US Nobel Prize Laureate in Economics Paul Krugman and President Gustavo Pietro participated in the Forum on New Paradigms of Economic Development, organized by Javiriana University. It was space Krugman took the opportunity to share his view on the opportunities emerging economies present To develop like a Colombian.
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To begin his presentation, the Nobel laureate took South Korea and Mexico as examples. Both countries have implemented a strategy to develop their manufacturing industries to replace imported products, and later make its way into foreign trade.
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This has long been regarded as the ideal formula for achieving the development of the nation. However, the results of both economies were different. In South Korea, this measure worked and its economy has maintained a growth trend since the middle of the 20th century. On the contrary, Mexico, although linked to a large North American manufacturing system, reaching the United States and becoming an exporting country, did not achieve the same development.
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This behavior allowed us, according to Krugman, to discover that “there are countries that have achieved rapid growth that are integrated into the global economy, and there are no countries that have achieved development without being integrated and, Unfortunately, there are countries that merged without achieving the rapid development that we wanted to see“.
In other words, the known strategy was not accurate in describing the differences presented by all countries; but, The potential for development is there and as it is repeated in very few examples, it is not easy to achieve.
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With that in mind, Krugman points out, Colombia has the advantage of having natural resources, resources that countries like Malaysia, which started out poor and are now big exporters, don’t. In this sense, one might think so The country can be a success story in terms of development, but he stresses that it is not that easy.
Development requires conditions such as integration into the global economy, education and the rule of law, however Even with all this, Noble points out, progress cannot be guaranteed and it is not known exactly how development works. Also, the world in which the examples you used were given has some rules that no longer apply.
Development opportunity
This does not mean that there are no opportunities to make it happen today. According to Krugman, There is still room for countries to develop as long as they are seen as doing well and sensibly in world trade.
An example of this is the case of India, despite the fact that the era of globalization and development does not provide the results that they achieved a few years ago, this Asian country is showing excellent results in its economic development, like Bangladesh. Both of them are still poor, Krugman points out, but they are richer than they were before.
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For all of the above, the economist ends his intervention by saying that in some cases, success stories in terms of development are possible and Countries that understand the values of peace, democracy and freedom will have an easier time achieving them.
Juan David Cano Lopera
EL TIEMPO Multimedia Journalism School
Writing economics
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