chapter  26
13 Pages

Development: The Market Is Not Enough


As the 1990s begin, the development debate has all but disappeared in the West. Monumental changes in Eastern Europe and Latin America are widely interpreted as proof of the superiority of development models that are led by the private sector and oriented toward exports. Free-market capitalism is said to have prevailed because only it promises growth and democracy for the battered economies of Africa, Asia, and Latin America. World Bank President Barber Conable summed up this prevailing view in remarks made in February 1990: “If I were to characterize the past decade, the most remarkable thing was the generation of a global consensus that market forces and economic efficiency were the best way to achieve the kind of growth which is the best antidote to poverty.”