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Rodrik, Dani
5 articles of this author have been cited in the European Press Review so far.
Dani Rodrik on developing countries as engines of the world economy
If developing countries become engines of the world economy, global politics will be threatened, Dani Rodrik, professor of political economy at Harvard University, writes in the business newspaper Világgazdaság: "Will a global economy in which developing countries carry much more weight promote the kind of global governance that strengthens an open economic environment? Threshold countries have to date been unable to demonstrate the kind of global leadership that would imply a 'yes' in answer to this question. The global institutions of today - the International Monetary Fund, the World Bank and the World Trade Organisation - are still largely the product of US hegemony. ... These institutions reflected US interests. ... Countries like Brazil, China, India and South Africa have so far shown little interest in contributing to the establishment of global systems and preferred to remain free riders. ... If the economic centre of gravity were to shift towards developing countries, that process ... will not be free of friction."
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More from the press review on the subject » Economy, » Global
The IMF needs rethinking
The head of the International Monetary Fund (IMF) Dominique Strauss-Kahn has dismissed proposals for taxing purely speculative capital flows, in the wake of Brazil's decision to impose a two-percent tax on such flows to prevent a speculation bubble. Harvard professor Dani Rodrik criticises Strauss-Kahn's approach in the business paper Világgazdaság: "Unfortunately, this makes the new IMF sound too much like the old one. ... The IMF's reaction to Brazil's financial taxes reflects how ingrained finance fetishism has become. ... The problem is not just right-wing market fundamentalists. The failure of imagination extends across the entire political spectrum. Referring to capital controls, John Maynard Keynes famously said: 'What used to be heresy [restrictions on capital flows] is now endorsed as orthodoxy.' That was at the dawn of the Bretton Woods era in 1945. What an irony that more than 60 years later we need to undergo the same shift in mindset."
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More from the press review on the subject » Fiscal Policy, » Global
Protectionism harms everyone
Harvard professor for political economy Dani Rodrik comments in the economic daily Világgazdaság on why the much heralded threat of protectionism failed to make itself felt: "There was a dog that didn't bark during the financial crisis: protectionism. Despite much hue and cry about it, governments have in fact imposed remarkably few trade barriers on imports. Indeed, the world economy remains as open as it was before the crisis struck. ... As John Maynard Keynes recognized, trade restrictions can protect or generate employment during economic recessions. But what may be desirable under extreme conditions for a single country can be highly detrimental to the world economy. When everyone raises trade barriers, the volume of trade collapses. No one wins. That is why the disastrous free-for-all in trade policy during the 1930's greatly aggravated the Great Depression. ... If the world has not fallen off the protectionist precipice during the crisis, as it did during the 1930's, much of the credit must go the social programs that conservatives and market fundamentalists would like to see scrapped."
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More from the press review on the subject » Economic Policy, » Global
Dani Rodnik on globalisation in the age of the financial crisis
Harvard political economy professor Dani Rodrik writes in the business paper Világgazdaság that although the US economy is slowly starting to recover, "the troubles for the world economy are just starting. If globalisation does not get the fix it needs, economic prospects will be dim for rich and poor countries alike. ... It will take real effort and creativity to repair the deep cracks in globalisation revealed by the financial crisis. ... History teaches that global economic order is difficult to establish and maintain in the absence of a dominant economic power. The interwar period, which suffered from a similar crisis of leadership, produced not only a collapse of globalization, but a devastating armed conflict on a global scale. So the stakes in righting the world economy could not be higher. Mismanage the process, and the consequences could be unimaginable. ... In effect, the best way to save globalization is to not push it too far."
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More from the press review on the subject » Economic Policy, » U.S., » Global
Dani Rodrik on the potential consequences of the economic and financial crisis
Harvard economist Dani Rodrik writes in the business paper Világgazdaság about the possible changes the economic and financial crisis could bring about in the global economy: "The world economy, however, is unlikely to look the same [after the crisis]. ...Growth in the developing world tends to come in three distinct variants. First comes growth driven by foreign borrowing. Second is growth as a by-product of commodity booms. Third is growth led by economic restructuring and diversification into new products. ... What should be of greater concern is the potential plight of countries in the last group. These countries will need to undertake major changes in their policies to adjust to today's new realities. The first two growth models invariably come to a bad end. Foreign borrowing can enable consumers and governments to live beyond their means for a while, but reliance on foreign capital is an unwise strategy. ... Growth driven by high commodity prices is also susceptible to busts, for similar reasons. ... So it is no surprise that the countries that have produced steady, long-term growth during the last six decades are those that relied on a different strategy: promoting diversification into manufactured and other 'modern' goods."
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More from the press review on the subject » Fiscal Policy, » Economic Policy, » Global
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