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What’s the Big Idea? The Third Generation of Policies for Economic Growth


  • David L. Lindauer


  • Lant Pritchett



"Economists and reform minded policymakers in Latin America are asking themselves, and are being asked, hard questions these days. The broad consensus is that two decades of reform have had too little toshow for it. Sporadic and sputtering economic growth and stagnant real wages (especially for the unskilled) is not what was expected. This paper puts the Latin American experience in the global context and examines the processes that brought the region to this point. We look at the trends in policy advice on economic growth and how they were formed, and we address the question of what economists can do now to help the region move in restoring economic growth."

Suggested Citation

  • David L. Lindauer & Lant Pritchett, 2002. "What’s the Big Idea? The Third Generation of Policies for Economic Growth," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Fall 2002), pages 1-40, August.
  • Handle: RePEc:col:000425:008690

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    References listed on IDEAS

    1. Alberto Alesina & Dani Rodrik, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 109(2), pages 465-490.
    2. Roland Benabou, 2000. "Unequal Societies: Income Distribution and the Social Contract," American Economic Review, American Economic Association, vol. 90(1), pages 96-129, March.
    3. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    4. Allen, Robert C., 1992. "Enclosure and the Yeoman: The Agricultural Development of the South Midlands 1450-1850," OUP Catalogue, Oxford University Press, number 9780198282969, June.
    5. James A. Robinson & Daron Acemoglu, 2000. "Political Losers as a Barrier to Economic Development," American Economic Review, American Economic Association, vol. 90(2), pages 126-130, May.
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    Cited by:

    1. Alberto Melo & Andrés Rodríguez-Clare, 2006. "Productive Development Policies and Supporting Institutions in Latin America and The Caribbean," IDB Publications (Working Papers) 3358, Inter-American Development Bank.
    2. Ricardo Adrogué & Martin Cerisola & Gaston Gelos, 2010. "Brazil's long-term growth performance: trying to explain the puzzle," Journal of Economic Studies, Emerald Group Publishing, vol. 37(4), pages 356-376, September.
    3. Armando Castelar Pinheiro & Regis Bonelli & Ben Ross Schneider, 2004. "Pragmatic Policy in Brazil : the political economy of incomplete market reform," Discussion Papers 1035, Instituto de Pesquisa Econômica Aplicada - IPEA.
    4. Bhaskara Rao & Maheshwar Rao, 2005. "Determinants Of Growth Rate: Some Methodological Issues With Data From Fiji," Macroeconomics 0509003, EconWPA.
    5. Armando Castelar Pinheiro & Regis Bonelli & Ben Ross Schneider, 2015. "Pragmatic Policy in Brazil: the Political Economy of Incomplete Market Reform," Discussion Papers 0132, Instituto de Pesquisa Econômica Aplicada - IPEA.
    6. Hodler, Roland & Dreher, Axel, 2013. "Development (paradigm) failures," Journal of Development Economics, Elsevier, vol. 101(C), pages 63-74.
    7. Derek Headey, 2007. "What Professor Rodrik Means by Policy Reform: Appraising a Post-Washington Paradigm," CEPA Working Papers Series WP052007, School of Economics, University of Queensland, Australia.
    8. Tzeng, Cheng-Hua, 2008. "Developing high-technology latecomer firms to compete internationally: A three-sector growth model," Journal of International Management, Elsevier, vol. 14(2), pages 190-206, June.
    9. Jeronimo Zettelmeyer, 2006. "Growth and Reforms in Latin America; A Survey of Facts and Arguments," IMF Working Papers 06/210, International Monetary Fund.
    10. Yuan Zi, 2014. "Trade Costs, Global Value Chains and Economic Development," CTEI Working Papers series 06-2014, Centre for Trade and Economic Integration, The Graduate Institute.
    11. Mckenzie,David J. & Paffhausen,Anna Luisa, 2015. "Development economics as taught in developing countries," Policy Research Working Paper Series 7521, The World Bank.

    More about this item


    trends in policy advice; Latin America; history of policy advice; Latin America;

    JEL classification:

    • B20 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - General
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • N46 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Latin America; Caribbean
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General


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