Great Controversies: Developing the Domestic Market

Thomas Palley

Challenge, 2006, vol. 49, issue 6, pages 20-34

Abstract: The model on which the world's most influential financial institutions base their development policies emphasizes export-led growth and supplyside development. It pays no attention to developing the domestic demand of economies, yet it is critical to growth. A fundamental political obstacle to incorporating demand-side development concerns into policy is that it would place the IMF and the World Bank at odds with their global political paymasters.

Date: 2006

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