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Tuesday, February 14, 2006

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Lord

Economic openness meaning export oriented probably so, but lack of openness in imports or exchange rates ia much more the rule. It is only when they have become the dominant exporting economy that full openness is deemed desireable and necessary. Mercantilism is as alive today as in Smith's time.

Ryan Pitylak

I agree that a durable set of institutions is important, especially so that growth can be pro-poor. If you define a country as getting rich because per capita income is increasing (a usual standard), then you are missing out on the effects of globalization on the poor. It's better to look at inequality within a country. If we use that in conjunction with per capita income growth figures, then we can feel confident that the country is getting "richer." Without keeping in mind what the effects of globalization can have on the poor, a "rich" country could be just a few people who've become very rich. This would skew the per capita GDP higher, when in actuality the majority of people may be poorer.

Ryan Pitylak

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