This paper, first, distinguishes new developmentalism (a new theoretical system that is being created) from ‘really existing’ developmentalism (a form of organizing capitalism). Second, it distinguishes new developmentalism from its antecedents, development economics or classical developmentalism and Keynesian macroeconomics. Third, it discusses the false opposition that some economists have adopted between new developmentalism and social-developmentalism, which the author understands as a form of really existing developmentalism; as theory, it is just a version of classical developmentalism with a bias toward immediate consumption. Finally, it makes a summary of new developmentalism – of its main political economy, economic theory, and economic policy claims.
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- Author or Editor: Luiz Carlos Bresser-Pereira x
Luiz Carlos Bresser-Pereira
New Developmentalism, which criticizes, is a new theoretical approach to development macroeconomics and the political economy of middle-income countries. It is a system of thought whose roots are in Post-Keynesian economics and Classical Developmentalism, but it is an open and growth-oriented approach. This paper summarizes the new theoretical framework. Thereafter, it responds to the indictments that New Developmentalism is neither a Post-Keynesian nor a developmental theory, but rather an expression of the ‘market failure approach,’ ‘methodological nationalism,’ the ‘mistaken’ association of exchange-rate economic growth, etc. The paper then argues that New Developmentalism is a system of thought that responds to the new realities of the globalized world and compares New Developmentalism with Classical Developmentalism.
Monograph Chapter
In Monetary Integration and Dollarization
Edited by Matías Vernengo
- Published in print:
- 25 May 2006
Luiz Carlos Bresser-Pereira
Monograph Chapter
In Innovation, Evolution and Economic Change
Edited by Blandine Laperche, James K. Galbraith and Dimitri Uzunidis
- Published in print:
- 25 May 2006
Luiz Carlos Bresser-Pereira
The ‘Rest’ will only be able to catch up and grow more than the West if it goes against a ‘received truth’: capital-rich countries should transfer their capitals to capital-poor countries. This is intuitively the truth, and the mantra that the West uses to occupy the markets of developing countries with their finance and their multinationals. Yet, new developmentalism tells us that developing countries will invest (and save) more if their current account is balanced, if not showing a surplus. Starting from a balanced current account, the decision to incur in deficits or grow cum ‘foreign savings’ – actually, foreign finance – will appreciate the exchange rate in the long term and discourage investment. In consequence, we will have a high rate of substitution of foreign for domestic savings, and foreign finance will finance consumption, not investment. Yet, developing countries have difficulty realizing this, first, because the West and their economists are adamant in recommending current account deficits; second, because such policies are consistent with a high preference for immediate consumption; and third, because economists in developing countries are unable to criticize the ‘growth cum foreign savings policy’.
Monograph Chapter
In Mapping a New World Order
Edited by Vladimir Popov and Piotr Dutkiewicz
- Published:
- 30 June 2017
Monograph Chapter
In A Post Keynesian Perspective on Twenty-First Century Economic Problems
Edited by Paul Davidson
- Published in print:
- 26 Feb 2002
Monograph Chapter
In Economic Crises and Policy Regimes
Edited by Hideko Magara
- Published:
- 28 March 2014
Luiz Carlos Bresser-Pereira and Cleomar Gomes da Silva
Monograph Chapter
In Keynes and Macroeconomics After 70 Years
Edited by L. Randall Wray and Matthew Forstater
- Published in print:
- 28 Dec 2008