Rise and Fall of Protectionis Essays

Rise and Fall of Protectionis Essays Rise and Fall of Protectionis Essay Rise and Fall of Protectionis Essay 1995); work on global environmental commons; and the emergence of social exclusion as a concept of deprivation (Gore, 1996b). The spatial frame shift is likely to be linked to the re-introduction of a historical perspective, which is already becoming evident, for example, in analyses of the history of globalization of economic activity (Bairoch, 1993; Bairoch Kozul-Wright, 1998; Brenner, 1998). But with the rejection of grand narratives, bringing history back in should not presage a return to the old teleological historicism, but rather identify alternative situations and possible development paths, and thereby inform a RISE AND FALL OF THE WASHINGTON CONSENSUS 801 pragmatic commitment to progressive change in favor of present as well as future generations. The values which will glue together the new way of seeing the world are, like the methods of global analysis, as yet unclear. The most likely prospect is that we shall be blown into the uture facing backward, embracing a form of embedded communitarian liberalism, which seeks to reconcile the achievement of national, regional and global objectives, and to marry universal values with a respect for diversity. But this is still waiting to be born. NOTES 1. That is, a constellation of beliefs, values, techniques and group commitments shared by members of a given community, founded in particular on a set of shared axioms, mode ls and exemplars (see Kuhn, 1970). The term paradigm is used in this sense throughout this paper. . For an extended discussion of the importance of frames in policy analysis, see Schn and Rein (1994). o The notion of the frame is also pivotal in Amartya SenOs work on development evaluation, though he uses the term informational basis of evaluative judgements rather than frame. 3. For deeper discussion of these debates, and the role of international development agencies in them, see Arndt (1987), chapters 3 and 4. 4. This was a complex historical process. As Kuhn (1970) explains, the timing of paradigm shifts is in? enced not simply by scienti ®c and policy debate, but also broader political and ideological con ®gurations. These broader changes, which include the election of conservative political leaders in the United Kingdom, United States and Germany in the late 1970s and early 1980s, will not be dealt with here. For a subtle account, which locates changes in development thi nking and practice within a broader counter-revolution against Keynesian economic policies, see Toye (1993). 5. For these two lines of argument, see various World Development Reports, particularly World Bank (1983, 1986, 1987). The last, as well as criticizing deviant policies, is an exemplar of the mobilization of East Asian experience to support key principles of a LIEO. 6. For an extended discussion of methodological nationalism, see Gore (1996a). 7. The term global liberalism is used here as shorthand for various types of LIEO, which may or may not allow a circumscribed role for national government intervention in market processes. 8. The term historicism is used here in the most general sense given by Popper (1960, p. 3). It does not imply that planning which aims at arresting, accelerating or controlling development processes is impossible, though some historicists would adopt this stronger position (Popper, 1960, pp. 44 ±45). 9. Exemplars are Rostow (1960) and Chenery and Syrquin (1975). 10. Lyotard (1984) sees the main criterion which is used to legitimate knowledge after the questioning of the grand narratives as performativity, which is understood as assessment of the performance of systems in terms of the best input/output relations (p. 46). 11. Various academic books and articles are associated with these policy reports. Key elements of Latin American neostructuralism, which developed as a response to the weaknesses of both neoliberalism and importsubstitution industrialization, are set out in Bitar (1988), Ffrench-Davies (1988), Sunkel and Zuleta (1990), Fajnzylber (1990) and Sunkel (1993), and are surveyed in Kay (1998). A Japanese view of the contrast between East Asian developmentalism and the Washington Consensus is set out in OECF (1990), whilst Okudo (1993) and JDB/JERI (1993) discuss the Japanese approach, focusing on two important policy mechanisms which diverge from the tenets of the dominant approach? two-step loans and policy-based lending. UNCTADOs reconstruction of East Asian developmentalism, which was elaborated independently of Latin American neostructuralism, draws on analyses of the Japanese development experience, particularly Akamatsu (1961, 1962) and Shinohara (1982), and key elements are set out in Akyz and Gore (1996) and Akyz u u (1998). 12. For an outline of this approach see, inter alia, Sen (1993), and an analysis of the limits of its moral individualism is made in Gore (1997). 13. For examples of a loose approach to poverty analysis based on the concept of sustainable human development, see UNDP (1995a,b); but Banuri et al. 1994) attempt to give a more rigorous speci ®cation of 802 WORLD DEVELOPMENT 15. There are some divergences between the East Asian and Latin American approaches. The latter gives more prominence to environment and democracy, is less committed to aggressive sectoral targeting (ECLAC, 1996, pp. 70 ±71; Ocampo, 1999), and has a more re ®ned policy analysis of the process of  ® nancial integration than East Asian developmentalism (ECLAC, 1995, Part 3). But their similarities, and common disagreements with the Washington Consensus, are more striking. 16. For an interesting alternative interpretation of this fault line, see Yanagihara (1997) who contrasts an ingredients approach and a framework approach and seeks ways of synthesizing them. 17. To paraphrase Yanagihara and Sambommatsu (1996). the concept through the notion of social capital. An interesting recent development has been to link sustainable human development to the promotion of human rights discourse, which some see as an alternative global ethics to neoliberalism. The increasing incorporation of the voice of nongovernment organizations (NGOs) into or alongside UN social deliberations is also a? cting the SHD approach. A good discussion of some of the notions which animate these discussions is Nederveen Pierterse (1998). 14. It is di? cult to identify an African strand to the Southern Consensus, but Mkandawire and Soludo (1999) seek to develop an African alternative to the Washington Consensus, and UNCTAD (1998, part 2) has drawn implications of the East Asian development experience for Africa. REFERENCES Akamatsu, K. (1961). A theory of unbalanced growth in the world economy. Weltwirtschaftliches Archiv, 86, 196 ±215. Akamatsu, K. (1962). A historical pattern of economic growth in developing countries. The Developing Economies, 1 (1), 3 ±25. Aky z, Y. (1998) New Perspectives on East Asia. u Journal of Development Studies (special issue) 34 (6). u Aky z, Y. , Gore, C. G. (1996). The investment-pro ®ts nexus in East Asian industrialization. World Development, 24 (3), 461 ±470. Amsden, A. (1994). Why isnt the whole world experimenting with the East Asian model to develop? : review of the East Asian miracle. World Development, 22 (4), 627 ±634. Arndt, H. W. (1987). Economic development: the history of an idea. Chicago: University of Chicago Press. Bairoch, P. (1993). Economic and world history. Brighton: Wheatsheaf. Bairoch, P. , Kozul-Wright, R. (1998). Globalization myths: some historical re? ections on integration, industrialization and growth in the world economy. In R. Kozul-Wright R. Rowthorn, Transnational corporations and the global economy (pp. 37 ±68). London: Macmillan; New York: St. Martins Press. Banuri, T. et al. (1994). De ®ning and operationalizing sustainable human development: a guide for practitioners. Bureau for Programme Policy and Evaluation. New York: UNDP. Bauer, P. T. (1971). Dissent on development: studies and debates in development economics. London: Weidenfeld and Nicolson. Bitar, S. (1988). Neo-conservatism versus neo-structuralism in Latin America. CEPAL Review, 34, 45 ±62. Brenner, R. (1998). The economics of global turbulence: a special report on the world economy, 1950 ±98, New Left Review, 229, (May/June). Byres, T. J. (1979). Of neopopulist pipedreams: Daedalus in the Third World and the myth of urban bias. Journal of Peasant Studies, 6 (2), 210 ±244. Campos, J. E. , Root, H. L. (1996). The key to the Asian miracle: making shared growth credible. Washington, DC: The Brookings Institution. Chang, H. -J. , Palmer, G. , Whittaker, D. Hugh. 1998). The Asian crisis. Cambridge Journal of Economics (special issue), 22. Chenery, H. B. , Syrquin, M. (1975). Patterns of development, 1950 ±70. London: Oxford University Press. ECLAC (1990). Changing production patterns with social equity: the prime task of Latin America and Caribbean development in the 1990s. ECLAC, Santiago, Chile. ECLAC (1992). Social equity and changing production patterns: an integrated approach. ECLAC, Santiago, Chile. ECLAC (1994). Open regionalism in Latin America and the Caribbean: economic integration as a contribution to changing production patterns with social equity. ECLAC, Santiago, Chile. ECLAC (1995). Policies to improve linkages with the global economy. ECLAC, Santiago, Chile. ECLAC (1996). Strengthening development: the interplay of macro- and microeconomics. ECLAC, Santiago, Chile. ESCAP (1990). Restructuring the developing economies of Asia and the Paci ®c in the 1990s. United Nations, New York. Evans, P. (1998). Transferable lessons? Re-examining the institutional prerequisites of East Asian economic policies. Journal of Development Studies, 34 (6), 66 ±86. Fajnzylber, F. (1990) Industrialization in Latin America: from the black box to the empty box. Cuardenos de la CEPAL, 60, CEPAL, Santiago, Chile. RISE AND FALL OF THE WASHINGTON CONSENSUS Ffrench-Davies, R. (1988). An outline of a neo-structuralist approach. CEPAL Review, 34, 37 ±44. Gere? , G. (1995). Contending paradigms for crossregional comparison: development strategies and commodity chains in East Asia and Latin America. In P. H. Smith, Latin America in comparative perspec tive: new approaches to methods and analysis (pp. 33 ±58). Boulder, CO: Westview Press. Gore, C. G. (1996a). Methodological nationalism and the misunderstanding of East Asian industrialization. European Journal of Development Research, 8 (1), 77 ±122. Gore, C. G. (1996b). Social exclusion, globalization, and the trade-o? between e? ciency and equity. In G. Khler et al. , Questioning development: essays in o the theory, policies and practice of development interventions (pp. 103 ±116). Metropolis Verlag, Marburg. Gore, C. G. (1997). Irreducibly social goods and the informational basis of Amartya Sens capability approach. Journal of International Development, 9 (2), 235 ±250. Haq, M. ul. (1995). Re? ections on human development. Oxford: Oxford University Press. IMF (1997) World economic outlook. Globalization: opportunities and challenges. IMF, Washington DC. JDB/JERI (Japan Development Bank and Japan Economic Research Institute) (1993). Policy-based  ®nance: the experience of postwar Japan. Final Report to the World Bank, Washington, DC. Johnson, H. J. (1967). The ideology of economic policy in the new States. In H. G. Johnson, Economic nationalism in old and new states (pp. 124 ±141). Chicago: University of Chicago Press. Kay, C. (1989). Latin American theories of development and underdevelopment. London: Routledge. Kay, C. (1998). Relevance of structuralist and dependency theories in the neoliberal period: a Latin American perspective. Working Paper Series No. 281, Institute of Social Studies, The Hague. Kuhn, T. (1970). The structure of scienti ®c revolutions (2nd ed. ) enlarged. In International encyclopaedia of uni ®ed science (Vol. 2, No. 2). Chicago: University of Chicago Press. Krugman, P. (1995). Dutch tulips and emerging markets. Foreign A? airs, 74 (4), 28 ±44. Lyotard, J. -F. (1984). The post-modern condition: a report on knowledge. Manchester: Manchester University Press. Mkandawire, T. , Soludo, C. 1999). Our continent, our future: African perspectives on structural adjustment. Trenton, NJ, and Asmara, Eritrea: Africa World Press. Nederveen Pierterse, J. (1998). My paradigm or yours? Alternative development, post-development, re? exive development. Development and Change, 29, 343 ± 373. Ocampo, J. A. (1999). Beyond the Washington Consensus: an ECLAC perspective. Paper prepared for the conf erence on Beyond the Washington Consensus: Net Assessment and Prospects for New Approach, organized by the Department of Comparative Research on Development of the Ecole des Hautes 803 Etudes en Sciences Sociales, Paris, and MOST of UNESCO, June 1999, Paris. OECF (1990). Issues related to the World BankOs approach to structural adjustment  ± proposal from a major partner. OECF Discussion Paper No. 1. Okudo, H. (1993). Japanese two-step loans: the Japanese approach to development  ®nance. Hitotsubashi Journal of Economics, 34, 67 ±85. Ottavino, G. I. P. , Puga, D. (1998). Agglomeration in the global economy: a survey of the `New Economic Geography. The World Economy, 21 (6), 707 ±732. Popper, K. R. (1960). The poverty of historicism (2nd ed. ). London: Routledge, Kegan and Paul. Rodrik, D. (1994). King Kong meets Godzilla: the World Bank and the East Asian miracle. CEPR Discussion Paper, No. 944, CEPR Oxford. Rostow, W. (1960). The stages of economic growth: a non-communist manifesto. Cambridge: Cambridge University Press. Schn, D. , Rein, M. (1994). Frame re? ection: towards o the resolution of intractable policy controversies. New York: Basic Books. Sen, A. (1993). Capability and well-being. In M. Nussbaum A. Sen, The quality of life (pp. 30 ± 54). Oxford: Clarendon Press. Shinohara, M. (1982). Industrial growth, trade and dynamic patterns in the Japanese economy. Tokyo: Tokyo University Press. Singh, A. (1994). Openness and the market-friendly approach to development: learning the right lessons from development experience. World Development, 22 (12), 1811 ±1823. Stiglitz, J. (1998a). More instruments and broader goals: Moving toward the post-Washington consensus. The WIDER Annual Lecture, Helsinki, Finland, January 7. Stiglitz, J. (1998b). Towards a new paradigm for development: Strategies, policies, and processes. Prebisch Lecture given at UNCTAD, Geneva, October 19. Sunkel, O. , Zuleta, G. (1990). Neo-structuralism versus neo-liberalism in the 1990s. CEPAL Review, 42, 36 ±51. Sunkel, O. (1993). Development from within: toward a neostructuralist approach for Latin America. Boulder, CO: Lynne Reinner Publishers. Toye, J. (1993). Dilemmas of development: re? ections on the counter-revolution in development theory and practice (2nd ed. ). Oxford: Blackwell. UNCTAD (1994). Trade and development report. Geneva: United Nations. UNCTAD (1996). Trade and development report. Geneva: United Nations. UNCTAD (1997). Trade and development report. Geneva: United Nations. UNCTAD (1998). Trade and development report. Geneva: United Nations. UNDP (various years). Human development report. New York: Oxford University Press. UNDP (1995a). Poverty eradication: a policy framework for country strategies. New York: UNDP. UNDP (1995b). From poverty to equity: an empowering and enabling strategy. New York: UNDP. 804 WORLD DEVELOPMENT World Bank (various years). World development report. New York: Oxford University Press. World Bank (1993). The East Asian miracle. New York: Oxford University Press. World Bank (1997). Global economic prospects and the developing countries. Washington DC: World Bank. Yanagihara, T. (1997). Economic system approach and its applicability. In T. Yanagihara S. Sambommatsu, East Asian development experience: economic system approach and its applicability (pp. 1 ±35). Tokyo: Institute for Developing Economies. Yanagihara, T. , Sambommatsu, S. (1996). Exchange rate ? uctuations and Asian responses: growth strategy in the age of global money. IDE Spot Survey. Tokyo: Institute for Developing Economies. Wade, R. (1996). The World Bank and the art of paradigm maintenance: the East Asian Miracle in political perspective. New Left Review, 217, 3 ±36. Wood, A. (1994). North ±South trade, employment and inequality: changing fortunes in a skill-driven world. Oxford: Clarendon Press. Williamson, J. (1990). What Washington means by policy reform. In J. Williamson, Latin American adjustment: how much has happened (pp. 5 ±20). Washington DC: Institute of International Economics. Williamson, J. (1993). Democracy and the `Washington Consensus. World Development, 21 (8), 1329 ±1336. Williamson, J. (1997). The Washington Consensus revisited. In L. Emmerij, Economic and social development into the XXI century (pp. 48 ±61). Washington DC: Inter-American Development Bank (distributed by John Hopkins University Press, Baltimore).