Dani Rodrik: Import Substitution vs. Washington Consensus in Latin America

Dani Rodrik writes:

Dani Rodrik's weblog: The most telling chart I have seen in a long time: Here is what seems to have happened: For all its faults, IS promoted rapid structural change.  Labor moved from agriculture to industry, and within industry from lower-productivity activities to higher-productivity ones.  So much for the inherent inefficiency of IS policies!

Under WC, firms and industries were able to accomplish a comparable rate of productivity growth, but they did so by...