Development Policies and Globalization

Professor Erik S. Reinert
Professor Rainer Kattel

Economic development results from a complex mix of policies. Globalization and global production networks, in particular growing importance of outsourcing, create numerous challenges for development policies. In globalizing economy a country may be locked into specialization in technological dead-ends, but also specialize in being cost-cutting process innovations and in both cases create vicious circles of poverty while innovating. It can even be argued that, particularly in small states in the global periphery, a number of factors lead towards ‘primitivization’ rather than ‘modernization’. This course discusses development policies past and current, and in particular the challenge of globalization in the context of development policies.

Erik S. Reinert (ed.), Globalization, Economic Development and Inequality: An Alternative Perspective, Cheltenham, 2004.
Paul Krugman, “Trade and Wages, Reconsidered”, 2008.
Erik S Reinert, How Rich Got Rich, 2007, chapters 3-5.
Ragnar Nurkse, “International Trade Theory and Development Policy”, Rio lecture 1957
Albert O. Hirschman, “A Dissenter’s Confession: The Strategy of Economic Development Revisited”, in Meier and Seers, eds, Pioneers in Development, 1984.
John Toye, Dilemmas of Development, chapters 3 and 4.
Dani Rodrik, “Goodbye Washington Consensus, Hello Washington Confusion?”
Jeffrey Sachs, Common Wealth. Economics for a Crowded Planet, 2008, chapters 9 and 13.
Paul Collier, The Bottom Billion. Why the Poorest Countries Are Failing and What Can Be Done About it, 2007, chapters 2-5.
Erik S. Reinert and Rainer Kattel, The Qualitative Shift in European Integration: Towards Permanent Wage Pressures and a ‘Latin-Americanization’ of Europe?, PRAXIS Working Paper no 17/2004. Downloadable at

Credit: 3
Grade: Yes
Mandatory: Yes