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An Institutionalist's Policy Advice to Address International Inequalities: The Contributions of Gunnar Myrdal

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  • P. Ho

Abstract

Gunnar Myrdal made important contributions to policy advice that address the problem of international inequalities. These emerged from his attack on mainstream equilibrium analyses as applied to underdevelopment. In reacting to this attack, the mainstream drew upon its theory of commercial policy, and classified him as a protectionist and supporter of import-substituting industrialization. This paper clarifies that he was in support of both export promotion and import substitution. He also showed a good awareness of the desirability in different contexts of the main trade-policy instruments, but was by no means reaching knee-jerk conclusions in ranking them as the subscribers to the theory of commercial policy do. This is in harmony with his concept of development as involving an upward movement of the entire social system, including the recognition that trade policy is only one component of any development plan and that there have to be domestic reforms as well.

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  • P. Ho, 2009. "An Institutionalist's Policy Advice to Address International Inequalities: The Contributions of Gunnar Myrdal," Journal of Economic Issues, Taylor & Francis Journals, vol. 43(2), pages 337-344.
    • Handle: RePEc:mes:jeciss:v:43:y:2009:i:2:p:337-344
    DOI: 10.2753/JEI0021-3624430206
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    Cited by:

    1. Joseph E. Pluta, 2010. "Evolutionary Alternatives to Equilibrium Economics," American Journal of Economics and Sociology, Wiley Blackwell, vol. 69(4), pages 1155-1177, October.

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