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Are the development policy implications of the new economy, new? All that is old is new again

✍ Scribed by Matthew Clarke

Publisher
John Wiley and Sons
Year
2006
Tongue
English
Weight
76 KB
Volume
18
Category
Article
ISSN
0954-1748

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✦ Synopsis

Abstract

There is an (optimistic) view within the literature that the convergence of two long‐run broad trends, globalization and advances in information and communication technology, has resulted in a ‘new’ world economy. Within such a new economy, knowledge replaces traditional productivity input as the primary driver of economic growth. Evidence of this new economy is scarce, yet proponents are optimistic that such an economy offers great hope for developing countries. If this optimism is warranted appropriate government policies would include improving access levels and quality of telecommunication and electricity infrastructure, education and providing both direct and indirect support to encourage local firms to become engaged with the global economy. Ironically, these policies are consistent with current orthodox development policies currently pursued within the ‘old’ economy. In this regard, it seems that all that is old is new again. Copyright © 2006 John Wiley & Sons, Ltd.

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