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Development paths: A case for public investment as the alternative to the Washington Consensus

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  • Lauka, Earta

Abstract

This paper's aim is to provide a different standpoint in the development debate, by focusing on the short-sightedness of the international institutions when they propose a development agenda. Focusing on macroeconomic performance and on privatisation, they have found a solution in PPPs, which offer financing opportunities for public investment and at the same time they reduce the burden on governments budgets. As an alternative this paper proposes a model based on investment and self-dependency with combining elements from post- Keynesian theory as well as the Beijing Consensus. The model rests on the importance of SOEs to use industrial policy as a tool to achieve independence from western powers as well as to increase investment. The theoretical claims are supported by empirical analysis based on 98 developing countries over a 15 year period.

Suggested Citation

  • Lauka, Earta, 2018. "Development paths: A case for public investment as the alternative to the Washington Consensus," IPE Working Papers 108/2018, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
  • Handle: RePEc:zbw:ipewps:1082018
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    development state; PPP; Washington Consensus; privatization; public investment; Beijing Consensus; SOEs;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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