Meeting Ten: Globalization, Development, and Aid

Main debate: Is trade and financial liberalization the best approach for generating economic growth in developing nations?

Discussion questions:

1. A protectionist strategy of import substitution was adopted by most developing nations prior to the 1980s.  What problems does this type of strategy generate for developing nations? Is it a viable strategy?

2. What lessons can be drawn from the success of the East Asian nations which shifted from import substitution to outward-oriented strategies in the 1950s and 1960s? (Contrast Dollar and Kraay's interpretation of the evidence with the conclusions drawn by Rodrik. Which claims do you find most convincing?)

3. The Oxfam analysis makes clear that success of outward-oriented growth strategies for developing countries depends in part upon the trade policies of the advanced nations. What are the areas where trade barriers in the North create the largest problems for developing nations?  What types of reforms of U.S. policy do you advocate?

4. Is debt relief for highly-indebted developing nations a good idea?