| This paper reviews the development experience since the 1980's and finds room for guarded optimism about what we can learn from it. Firstly, a global consensus is emerging on the need for macro-economic stability through prudent fiscal, monetary and foreign exchange policies. However, at the micro or structural level, while governments need to decentralize their decision-making authority more fully than they have thus far, in reaction to the recent reappraisal of the East Asian model there is some danger that development policy will swing too far in rejecting liberalization and returning to government intervention. Secondly, the paper points out that, while there exists a well-recognized causal nexus between exports and growth, the reverse causation also... |
