Chapter 10: Dilemmas of Development

Summary

Important background information

What do you do?

Washington ConsensusThis model is based on the US-backed IMF policies for economic development and accentuates the positive role unregulated liberal capitalism can have on economic development. These policies include smaller state sectors, privatized markets, and liberalized trade and financial sectors.
Beijing ConsensusThis model is based on China's economic development and emphasizes the role of the state in global economic integration. This theory makes two claims. First, the world economy is turbulent and unpredictable. Second, developing countries can overcome economic turbulence and stabilize their development through systematic government controls on the pace of trade integration, capital inflows and outflows, the movement of labor within the country, and the external value of the national currency.
MarxismMarxist socialism, in practice, results in a communist economy. Marxists argue that open economic systems, such as capitalism, only benefit the capitalist upper class at the expense of the majority of society, the working class. Marxists also believe status quo international trade systems only serve the interests of the richest, capitalist states.