DVM 4130 Lecture Notes - Lecture 2: General Agreement On Tariffs And Trade, Industrial Revolution, Industrial Espionage
3 Dec 2014
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India in 1967 turned away from imf and the us towards the soviet. But the second oil price shock lead the american. This would also impact the countries" sovereignty. American banks were highest holders of debt. The new credit came with conditions such as adherence to structural adjustment programmes. They demanded not just immediate deflationary policies but macroeconomic reform and radical cuts on public expenditure: focused on privatization, liberalisation of local markets, rolling back of the state"s private companies, increased competition, less focus on social welfare, etc. Pushed the disciplining of debtors onto the ifis, where debtors had either submit (or default). Countries like britain did not succeed through complete liberalisation but many anti-liberal policies. Also, countries like japan, korea and taiwan did not succeed through liberalisation but were actually protectionist until they were ready to open their doors. Britain outright banned manufacturing activities it did not want developed in its colonies.
