The New Developmentalism and Conventional Orthodoxy

By Bresser-Pereira, Luiz Carlos | Ibero-americana, January 1, 2007 | Go to article overview

The New Developmentalism and Conventional Orthodoxy


Bresser-Pereira, Luiz Carlos, Ibero-americana


I. INTRODUCTION

After the failure of the neo-liberal policies prescribed by rich nations to promote macroeconomic stability and development, Latin America has become home to a clear movement for rejecting "conventional orthodoxy". Does this mean that today more developed countries, with sounder democracies, should return to the national-developmentalism of the 1950s, which was so successful in promoting development, but eventually became distorted and plunged into a crisis? Or might we consider a "new developmentalism"? In this paper, after examining the crisis of the national development strategy that was old developmentalism, I compare the rising new developmentalism with its earlier version, as well as with the set of diagnoses and policies rich nations have prescribed and pushed to developing countries since the neo-liberal ideological wave became prevalent worldwide: conventional orthodoxy. In the first section, I discuss old developmentalism, its initial success and becoming, outdated due to a series of new facts and distortions, and its replacement with conventional orthodoxy since the late 1980s. In the second section I discuss new developmentalism as a "third discourse" lying between the bureaucratic left wing's populism and the neo-liberalism of conventional orthodoxy. In the third section, I discuss the importance of the concept of nation and of the "national development strategy" institution. In the fourth section, I compare new and old developmentalism. In the fifth, I compare it with conventional orthodoxy. In the sixth section, I complete the comparison, presenting two pairs of alternative policy "tripods": the first pair opposing conventional orthodoxy and new developmentalism on economic growth, and the second, opposing the two strategies on macroeconomic policy.

II. THE OLD DEVELOPMENTALISM AND ITS CRISIS

Between the 1930s and the 1970s, Brazil and the remaining Latin American countries grew at an extraordinary pace. They took advantage of the weakening of the center to formulate national development strategies that, in essence, implied protection of the infant national industry and the forced promotion of savings through the State. This strategy was called "developmentalism", or "national-developmentalism". The purpose of such a name was to emphasize that, first, the policy's basic objective was to promote economic development, and, second that in order for this to happen, the nation - that is, businessmen, State bureaucracy, middle classes and workers joined together in international competition - needed to define the means to reach this objective within the framework of the capitalist system, with the State as principal collective action instrument. The notable economists that, then, studied development and made economic policy proposals, the politicians, government officials and businessmen that were most directly involved in this process were called "developmentalists" because they chose development as the ultimate goal for their economic analysis and political action. Latin-American economists who, together with a group of international economists, took part in formulating "development economics" were affiliated with three complementary schools of thought: the classical economics of Smith and Marx, Keynesian macroeconomics, and the Latin-American structuralist theory.1 Developmentalism was not an economic theory, but a national development strategy. It employed economic theories to formulate, for each country in the capitalist periphery, a strategy capable of gradually leading to the development level attained by central countries: market-based theories, for there is no economic theory that does not spring from the markets, but also political economy theories that cast the state and its institutions in a leading role as auxiliary coordinator of the economy. Developmentalism faced opposition from neo-classical economists that practiced "conventional orthodoxy" -that is, the set of diagnoses and economic policies and institutional reforms that rich, or Northern, nations prescribed to developing, or Southern, countries. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The New Developmentalism and Conventional Orthodoxy
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.