Download PDF by Dic Lo (auth.): Alternatives to Neoliberal Globalization: Studies in the

By Dic Lo (auth.)

ISBN-10: 0230361161

ISBN-13: 9780230361164

ISBN-10: 1349344842

ISBN-13: 9781349344840

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Extra resources for Alternatives to Neoliberal Globalization: Studies in the Political Economy of Institutions and Late Development

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The third strand has attempted to incorporate both individualistic and collective rationality in the analysis of the formation, evolution, and developmental attributes of institutions and economic systems as a whole. It has sought to derive the economic properties of institutions from accumulated empirical case studies, rather than taking as a starting point the presumption of a universally applicable, uniquely optimal (or most efficient) model of institutions. This third strand is thus not at ease with neoclassical economics.

This reasoning carries a strong stagnationist or under-consumptionist inclination, and contrasts with the supply-side focus of both the NIDL thesis and the Washington Consensus doctrine – and indeed much of the neoclassical endogenous growth literature (see the surveys by its chief protagonists, Romer 1994 and Solow 1994; Chapter 4 of this book provides a critical assessment of the literature). What accounts for the existence of a domestic market of sufficient size in the first instance? Given the deterministic overtone of conventional radical writings, this amounts to questioning the origin of the new development pattern.

The orthodox establishments seem, belatedly, to have woken up to the recognition that ‘capitalist economies differ in important ways in how they 37 38 Alternatives to Neoliberal Globalization regulate economic activities’ (Djankov et al. 2002). This recognition, trivial as it might appear to be, reflects important developments in the real world. While the protagonists cite a range of specific events – ‘the transition from socialism, the Asian financial crisis, and the European political and economic integration’ – as main motivations for the recognition, it is the general process of neoliberal globalization that is the ultimate motivation.

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Alternatives to Neoliberal Globalization: Studies in the Political Economy of Institutions and Late Development by Dic Lo (auth.)


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