The political economy of development policy change /

In this significant contribution to comparative analytical economic history, Ranis and Mahmood compare developmental patterns in three pairs of developing countries Mexico and Colombia, Taiwan and South Korea, and the Philippines and Thailand in an attempt to throw light on the diverse performance of developing nations in the post-1950 period. Their findings indicate that political power plays a decisive role in assessing the initial position of the economy, in determining developmental goals, and in applying available macropolicy instruments to achieve these goals. The government either permits the economy to subject itself to the competitive discipline of the market, or continues its intrusive policies to frustrate it. The authors recognize the limitations of the neoclassical doctrine and are willing to go beyond them without fear of violating paradigmatic "taboos." This study is a remarkable methodological feast of integrating analytical, empirical, historical, and functional-structural approaches and an implicit recognition of the need for a broader paradigm to deal with such fields as economic development, comparative economic systems, international trade, and economic history. It follows both the tradition established by Kuznets and the concept of the "magnificent dynamics" of the classical school. Insightful and well documented, the volume is highly recommended for academic and public libraries.-O. Zinam, University of Cincinnati