Structural Policies in Developing Countries
IMF Policy Discussion Papers, September 1, 1994
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- Structural Policies in Developing Countries
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Bibliographic details
- Authors: Eduardo Borensztein
- Published: September 1, 1994
- Series: IMF Policy Discussion Papers
- DOI: https://doi.org/10.5089/9781451964615.003
Overview
- Paper discusses the broad orientation of the economic systems adopted in developing countries.
- Notes historical prevalence of government-led development strategies in the 1950s and 1960s.
- Identifies a distinct trend towards the adoption of market-oriented systems in the last decade.
- Reviews international trade policies and financial markets policies, and discusses newer ideas supporting “industrial policies” to promote certain export activities.
Major findings
- Government-led development strategies were widely followed by developing countries since the 1950s and 1960s.
- In the last decade there has been a distinct trend towards the adoption of market-oriented systems.
- International trade policies show a move away from protectionism.
- Financial markets policies show financial repression giving way to more liberal systems.
- Newer ideas supporting “industrial policies” or policies to promote certain export activities are partly inspired by the success of several East Asian economies.
- The paper observes that the application of such industrial policies to other developing countries would not be promising.
Trade and financial market trends
- Trade: Movement away from protectionism toward more liberal trade policies.
- Finance: Financial repression is giving way to more liberal financial market systems.
- Emphasis on market liberalization and market development as recurring themes.
Discussion of industrial policies
- Industrial policies are presented as newer ideas aimed at promoting certain export activities.
- Inspiration for these policies partly derives from the success of several East Asian economies.
- The paper concludes that applying these industrial policy approaches to other developing countries would not be promising.
Subjects and keywords (as listed)
- Subjects: Financial crises, Financial services, International trade, Real interest rates, Trade barriers, Trade liberalization, Trade policy
- Keywords: Africa, developing country, Eastern Europe, economic system, financial market, goods market, liberalization, market development, market imperfection, market liberalization, PDP, Real interest rates, trade, Trade barriers, Trade liberalization, trade liberalization initiative, Trade policy, transition economies of Eastern Europe, transition economy
Eduardo Borensztein. September 1, 1994. Structural Policies in Developing Countries. IMF Policy Discussion Papers.