Martin Hart-Landsberg wrote:
> The difficulty in export-led development certainly should be clear in > the case of Mexico. It succeeded over the 1990s in attracting lots of > fdi and export growth. But at the cost of hollowing out its domestic > industry. Now a bit of wage growth and rising currency and that > foreign industry is now deserting Mexico for China. > > And China's rise which is being celebrated is coming at the expense of > export production in Malaysia and Singapore and leading to industrial > capital moving from South Korea. > > So, embracing this strategy is not very helpful. Hi Marty, The question is: "helpful" to whom? The case of Mexico is often raised when this question comes up, but the overall trend in terms of the flight of capital is from more developed countries to less developed (which, by definition, does not include S.Korea, Malaysia or Singapore). It's bad news for wage earners in developed and semi-developed countries. This includes me, but I find it hard and --- I would say futile --- to begrudge those in China, Kenya, Vanuatau, wherever. Regards, Grant.
