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Re: Economic theory and politics.
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Originally Posted by Ambiguous
What kind of inducements did you have in mind?
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In the opinion of someone who really doesn't know much about economics or development, I think IMF loans and World Bank funding. Instead of making the conditions for the funds ones of rapid liberalization, they could be prolonged directives for the state to nurture certain industries while dismantling the barriers. There are problems, certainly: once the industry becomes a vested interest, it may have the influence to maintain government subsidies even when it is strong enough to compete, like Western agribusiness. Nevertheless, the social costs of the rapid policies (which I think are being gradually replaced by more moderate policies, though I'm not sure) are too great to resist some sort of reform.
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