Globalization, Development and The State: The Performance of by Jørgen Dige Pedersen

By Jørgen Dige Pedersen

In its comparability of 2 significant rising countries, India and Brazil, this e-book methods the topic via an cutting edge theoretical mix of developmental states theory and theories of the altering nature of world capitalism.

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Extra resources for Globalization, Development and The State: The Performance of India and Brazil since 1990 (International Political Economy)

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As poor countries seek economic development, this management must aim at securing maximum access to global financial flows on the best possible terms; it will aim at reducing the risks of financial crisis undermining the financial base of the industrialization strategy; it may seek to reduce the reliance on fluctuating international financial flows through an increase in the availability of domestic finance/savings; and finally, it will require stable and capable domestic financial institutions.

20 Globalization, Development and the State The first to seriously debate the consequences for developing countries of the new techno-economic paradigm and its associated socioinstitutional framework was Carlota Perez (1985), who in a seminal article argued that the new, flexible, information-intensive productive activities based upon the use of microelectronics while clearly presenting new obstacles to economic growth for developing countries, also meant new opportunities for ‘leapfrogging’ into the new technologies and for entering new emerging niches in international markets.

24 The industrial activities that would be included in such an industrialization process would be those mature industries that Perez sees as being a characteristic of the declining techno-economic paradigm. In sum, this discussion on the impact of the transition from Fordism to post-Fordism on developing countries points to two ideal-type options available for developing countries in the context of a globalization of the Challenges for Developing Countries 21 new growth regime. One option, as emphasized by Perez, is to seek out relevant niches and opportunities in the new regime for knowledgeintensive production and seek an insertion into the global economy on this basis.

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