Introduction

This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book discusses Hungary's liberalization experiences and policy options. It examines the experiences of a large number of developing and newly industrializing countries and makes recommendations on how to overcome constraints, such as vested interests attempting to block economic policies by political action. The book explores economic policies and performances during 1963-1987 of two groups of newly industrializing countries: four economies in the Far East Singapore, Hong Kong, Korea, and Taiwan versus four in Latin America Argentina, Brazil, Chile, and Mexico. It illustrates with examples the global trend toward more liberal rules on foreign direct investment (FDI). The book shows that the relationship between trade liberalization and FDI liberalization, and concludes with policy recommendations for the countries of Central and Eastern Europe. It suggests that import-substitution and export-promotion have co-existed, in patterns that have certain similarities with those of Japan.