Arguing for Policy Space to Promote Development: Prebisch, Myrdal, and Singer

Abstract

Prebisch, Myrdal, and Singer have often been misrepresented as advocating nothing but import-substitution. They were actually alert to its pitfalls. They also ardently supported promoting exports. Prebisch and Singer separately expressed sensible caution against the impact of unregulated foreign direct investments (FDI). Singer also emphasized the importance of cultivating indigenous technological capabilities. Collectively, they thus strongly advocated the preservation of policy space for imports and exports, directing FDI, and borrowing and cultivating technologies. By distorting their messages, the economics mainstream has dominated the intellectual debate and contributed to the shrinkage in policy space beginning from the Uruguay Round trade negotiations.

Keywords::

• Prebisch
• Myrdal
• Singer
• policy space
• development