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Bringing the Structure Back in: Limited Access Orders, “Extreme” ISI and Development

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Abstract:

Structuralists highlighted politico-economic constraints on late development and advocated infant industry policies. In practice, highly distortionary implementation choices were near ubiquitous. Why did policymakers prefer this extreme policy? Employing North, Wallis & Weingast (2009), I argue politicians were constrained by a limited access order (LAO) to directly distribute production rights to powerful groups. “Extreme” ISI policies maximized politicians’ ability to directly distribute production rights; a milder policy meant replacing state-conferred rights with market mechanisms. I review representative “extreme” policies in Brazil, Chile and India, and then demonstrate their political efficacy in diversifying production rights that could be directly exchanged for elite support. Finally, I discuss the argument’s consistency with early structuralist emphasis on underlying politico-economic conditions as impediments to growth.

Tópico:

Economic Theory and Policy

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Citations: 1
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Información de la Fuente:

SCImago Journal & Country Rank
FuenteRevista de Estudios Sociales
Cuartil año de publicaciónNo disponible
VolumenNo disponible
Issue68
Páginas27 - 37
pISSN0123-885X
ISSNNo disponible

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