More on the limits of New Developmentalism

By Thomas Palley

PKES Working Paper 2213

April 2022

Oreiro and de Paula’s (2022) reply to my article (Palley, 2021) further convinces me that New Developmentalism (ND) substantially misconstrues the development challenge and ND’s policy recommendations lean in a Neoliberal direction. The critique of ND is not its emphasis of the importance of manufacturing. It is the regressive inclination, the narrowness of policy recommendations, neglect of the transformation dimension of development, and neglect of the implications of the shift to a post-industrial era.

Keywords: New Developmentalism, Classical Developmentalism, economic development, transformation

JEL classification: O11 O14 O23