Industrialization and Developing Countries’ Indebtedness: A Theoretical and Empirical Analysis
Author(s)
Yaghmaian, Behzad
Abstract
It is argued that the global capital market is not the savior it was said to be. The recent world financial crisis demonstrates that new strategies are needed. The essential meaning of the crisis is that in an age of financial volatility, scarcity, and skepticism, most countries will have to walk on their own legs more than their governments and elites had wanted or expected. The economies hit most severely by the crisis need to reinvent the arrangements connecting finance with the real economy. They need to make their prospects for sustained and socially inclusive growth less dependent on the whims of finance. In much of the world, the search is already under way for an alternative to what has come to be called neoliberalism, an alternative that would make the market shift – the global turn to markets – more people-friendly than it has been so far.
