I do not think Amsden's "getting prices wrong" is not applicable to
Peronist Argentina. The South Korean state and Peron's Argentina, both
intervened in the economy, thus deliberately got prices wrong (as
opposed to getting prices right with well functioning markets). The
main difference between S Korea and Argentina, among others, is the nature
of state intervention. In the former subsidy for exports was tied to
performance (to enhance national capitalist development), in the latter
ISI wa pursued to enhance national capitalist development. However, why
the nature of intervention has been different in the two countries
is a long story and I am afraid economists do not have the monopoly
of an adequate explanation.
Cheers, Anthony
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Anthony P. D'Costa, Associate Professor
Comparative International Development
University of Washington Campus Box 358436
1900 Commerce Street
Tacoma, WA 98402, USA
Phone: (253) 692-4462
Fax : (253) 692-5718
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
On Thu, 14 Sep 2000, Brad DeLong wrote:
> >I have never seen as concise description of social democracy. I like Alice
> >Amsden's refutation of your perspective -- especially her praise of
> >getting prices
> >wrong.
> >
> >Brad De Long wrote:
> >
> >>
> >> in a mixed economy, the government
> >> should be used to redistribute income and the market used to allocate
> >> resources; to get things backward--as Peron did, using the government
> >> to allocate resources and regulating market prices to redistribute
> >> income--doesn't work.
> >>
> >
> >--
> >Michael Perelman
>
> Since you have read Amsden, you know that the policies that she
> recommends are the complete opposite of those that Peron pursued.
> Amsden believes in subsidizing exports. Peron taxed them. Amsden
> believes in making it easy for export-oriented companies to acquire
> the hard currency they need to buy capital goods. Peron made it
> impossible for export-oriented companies to purchase foreign-made
> capital goods. Amsden believes in an undervalued exchange rate to
> promote exports and increase employment. Peron believed in using
> exchange controls to maintain an overvalued exchange rate to maximize
> terms of trade.
>
> In my view, there is a lot of truth in Amsden's "getting prices
> wrong" position. But as you know, her judgment of Peronist policies
> is much, much harsher and much, much more negative than mine.
>
>
> Brad DeLong
>
>
