Vijay Joshi and I. M. D Little
- Published in print:
- 1996
- Published Online:
- November 2003
- ISBN:
- 9780198290780
- eISBN:
- 9780191596506
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198290780.001.0001
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This book is a follow‐up study to an earlier work tracing India's economy up to 1991. Here the focus is on the economic reforms introduced after the financial crisis of 1991. The authors examine the ...
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This book is a follow‐up study to an earlier work tracing India's economy up to 1991. Here the focus is on the economic reforms introduced after the financial crisis of 1991. The authors examine the different areas of the economy and outline the successes and effects of reform measures. They utilize economic theory and knowledge to suggest ways to liberalize the economy and open up the market to revitalize the Indian economy alongside those reforms already implemented. They end with predictions of the future of economic reforms and what sectors should be seen as priorities for prospective development.Less
This book is a follow‐up study to an earlier work tracing India's economy up to 1991. Here the focus is on the economic reforms introduced after the financial crisis of 1991. The authors examine the different areas of the economy and outline the successes and effects of reform measures. They utilize economic theory and knowledge to suggest ways to liberalize the economy and open up the market to revitalize the Indian economy alongside those reforms already implemented. They end with predictions of the future of economic reforms and what sectors should be seen as priorities for prospective development.
Bernard M. Hoekman and Michel M. Kostecki
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780198294313
- eISBN:
- 9780191596445
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/019829431X.003.0008
- Subject:
- Economics and Finance, International
This chapter starts with brief overviews of global trade flows in services, the barriers that restrict such trade, and the economics of service sector protection and liberalization. This is followed ...
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This chapter starts with brief overviews of global trade flows in services, the barriers that restrict such trade, and the economics of service sector protection and liberalization. This is followed by a summary of the main elements of the GATS (General Agreement on Trade in Services) and a discussion of the experience obtained in the first five years of the operation of the GATS in expanding the coverage of the agreement. The chapter ends with a brief assessment of the usefulness of the GATS as an instrument for the pursuit of service sector reform. The different sections are as follows: Conceptual and empirical issues; Barriers and potential gains from reform; The Uruguay Round negotiations; The GATS; Sector‐specific negotiations and agreements; Electronic commerce; The challenge of expanding the GATS; and Conclusion.Less
This chapter starts with brief overviews of global trade flows in services, the barriers that restrict such trade, and the economics of service sector protection and liberalization. This is followed by a summary of the main elements of the GATS (General Agreement on Trade in Services) and a discussion of the experience obtained in the first five years of the operation of the GATS in expanding the coverage of the agreement. The chapter ends with a brief assessment of the usefulness of the GATS as an instrument for the pursuit of service sector reform. The different sections are as follows: Conceptual and empirical issues; Barriers and potential gains from reform; The Uruguay Round negotiations; The GATS; Sector‐specific negotiations and agreements; Electronic commerce; The challenge of expanding the GATS; and Conclusion.
Lawrence Edwards, Rashad Cassim, and Dirk van Seventer
- Published in print:
- 2009
- Published Online:
- May 2009
- ISBN:
- 9780199551460
- eISBN:
- 9780191720376
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199551460.003.0006
- Subject:
- Economics and Finance, Public and Welfare, Economic Systems
This chapter evaluates South Africa's trade policy under democracy, and critically reviews the burgeoning empirical studies of the effects of trade reform on trade flows, growth, employment, poverty, ...
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This chapter evaluates South Africa's trade policy under democracy, and critically reviews the burgeoning empirical studies of the effects of trade reform on trade flows, growth, employment, poverty, productivity, and inflation. The chapter is made up of three main sections. Section 2 reviews the process of trade reform in South Africa since the 1970s, with a particular focus on multilateral and preferential trade reform since 1994. Section 3 then evaluates the extent to which trade reform since 1994 has reduced nominal protection, effective protection and the anti-export bias. Section 4 reviews the empirical literature analysing the impact of trade liberalization and openness on the South African economy. The chapter concludes with an assessment of the scope for further trade reform.Less
This chapter evaluates South Africa's trade policy under democracy, and critically reviews the burgeoning empirical studies of the effects of trade reform on trade flows, growth, employment, poverty, productivity, and inflation. The chapter is made up of three main sections. Section 2 reviews the process of trade reform in South Africa since the 1970s, with a particular focus on multilateral and preferential trade reform since 1994. Section 3 then evaluates the extent to which trade reform since 1994 has reduced nominal protection, effective protection and the anti-export bias. Section 4 reviews the empirical literature analysing the impact of trade liberalization and openness on the South African economy. The chapter concludes with an assessment of the scope for further trade reform.
Giovanni Andrea Cornia (ed.)
- Published in print:
- 2004
- Published Online:
- August 2004
- ISBN:
- 9780199271412
- eISBN:
- 9780191601255
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199271410.001.0001
- Subject:
- Economics and Finance, Development, Growth, and Environmental
Based on an extensive review of relevant literature and an econometric analysis of inequality indexes, this book provides the first systematic analysis of the changes in within‐country income ...
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Based on an extensive review of relevant literature and an econometric analysis of inequality indexes, this book provides the first systematic analysis of the changes in within‐country income inequality over the last 20 years. Within‐country income inequality has risen since the early 1980s in most of the OECD, in all transitional countries, and in many developing countries; more recently, inequality has also risen in India and nations affected by the Asian crisis. Altogether, over the last 20 years, inequality worsened in 70% of the 73 countries analysed in the book, with the Gini index rising by more than five points in half of them. Mainstream theory focussing on rises in wage differentials by skill caused by North–South trade, migration, or on technological change, poorly explains the recent rise in income inequality. Likewise, while the traditional causes of income polarization—landownership inequality (high land concentration), unequal access to education, the urban bias (rural–urban inequality), the ‘curse of natural resources’—still account for much of the cross‐country variation in income inequality, they too cannot explain its recent rise. The book suggests that the recent rise in income inequality was caused to a considerable extent by a policy‐driven worsening in factorial income distribution, wage spread, and spatial inequality; in this regard, it discusses the distributive impact of reforms in trade and financial liberalization, taxation, public expenditure, safety nets, and labour markets. The volume represents one of the first attempts to analyse systematically the relation between policy changes inspired by liberalization and globalization and income inequality. It suggests that capital account liberalization appears to have had on average the strongest disequalizing effect, followed by domestic financial liberalization, labour market deregulation, and tax reform. Trade liberalization had unclear effects, while public expenditure reform often had positive effects. The book is arranged in four parts: I, Income Distribution Trends, Theories and Policies (2 chapters); II, Traditional Causes of Inequality: Still Relevant for Explaining its Rise in the 1980s–90s? (3 chapters); III, Recent Factors Influencing the Distribution of Income (6 chapters); and IV. Country Case Studies (5 chapters on India, Venezuela, Turkey, South Africa, and Thailand).Less
Based on an extensive review of relevant literature and an econometric analysis of inequality indexes, this book provides the first systematic analysis of the changes in within‐country income inequality over the last 20 years. Within‐country income inequality has risen since the early 1980s in most of the OECD, in all transitional countries, and in many developing countries; more recently, inequality has also risen in India and nations affected by the Asian crisis. Altogether, over the last 20 years, inequality worsened in 70% of the 73 countries analysed in the book, with the Gini index rising by more than five points in half of them. Mainstream theory focussing on rises in wage differentials by skill caused by North–South trade, migration, or on technological change, poorly explains the recent rise in income inequality. Likewise, while the traditional causes of income polarization—landownership inequality (high land concentration), unequal access to education, the urban bias (rural–urban inequality), the ‘curse of natural resources’—still account for much of the cross‐country variation in income inequality, they too cannot explain its recent rise. The book suggests that the recent rise in income inequality was caused to a considerable extent by a policy‐driven worsening in factorial income distribution, wage spread, and spatial inequality; in this regard, it discusses the distributive impact of reforms in trade and financial liberalization, taxation, public expenditure, safety nets, and labour markets. The volume represents one of the first attempts to analyse systematically the relation between policy changes inspired by liberalization and globalization and income inequality. It suggests that capital account liberalization appears to have had on average the strongest disequalizing effect, followed by domestic financial liberalization, labour market deregulation, and tax reform. Trade liberalization had unclear effects, while public expenditure reform often had positive effects. The book is arranged in four parts: I, Income Distribution Trends, Theories and Policies (2 chapters); II, Traditional Causes of Inequality: Still Relevant for Explaining its Rise in the 1980s–90s? (3 chapters); III, Recent Factors Influencing the Distribution of Income (6 chapters); and IV. Country Case Studies (5 chapters on India, Venezuela, Turkey, South Africa, and Thailand).
Sarah Joseph
- Published in print:
- 2011
- Published Online:
- September 2011
- ISBN:
- 9780199565894
- eISBN:
- 9780191728693
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199565894.003.0010
- Subject:
- Law, Public International Law, Human Rights and Immigration
This chapter summarizes potential WTO reforms in light of the human rights deficiencies within, or that are likely to be prompted by, WTO rules and processes, which are identified in Chapters 3 to 7. ...
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This chapter summarizes potential WTO reforms in light of the human rights deficiencies within, or that are likely to be prompted by, WTO rules and processes, which are identified in Chapters 3 to 7. These proposals are evaluated, and then compared with current proposals on the table during the Doha round. Finally, the phenomenon of bilateral and other free trade agreements outside the auspices of the WTO, focusing on the example of European Partnership Agreements, is discussed.Less
This chapter summarizes potential WTO reforms in light of the human rights deficiencies within, or that are likely to be prompted by, WTO rules and processes, which are identified in Chapters 3 to 7. These proposals are evaluated, and then compared with current proposals on the table during the Doha round. Finally, the phenomenon of bilateral and other free trade agreements outside the auspices of the WTO, focusing on the example of European Partnership Agreements, is discussed.
Sugata Marjit and Saibal Kar
- Published in print:
- 2011
- Published Online:
- September 2012
- ISBN:
- 9780198071495
- eISBN:
- 9780199081257
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198071495.003.0009
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter examines the connection between trade liberalization and poverty reduction, with a particular focus on informal sector workers in cities and towns of the developing world. More ...
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This chapter examines the connection between trade liberalization and poverty reduction, with a particular focus on informal sector workers in cities and towns of the developing world. More specifically, it looks at the channel between how trade reforms affect urban informal workers and how that in turn affects urban poverty. It offers a general equilibrium model relating international trade, informal sector, and poverty with a wider reach. The theoretical result predicts that informal wages should increase if there is trade liberalization and that there would be an expansion in the urban informal industrial base. The aggregate empirical exercise tests growth in informal wages and estimates if wage growth is capable of reducing urban poverty.Less
This chapter examines the connection between trade liberalization and poverty reduction, with a particular focus on informal sector workers in cities and towns of the developing world. More specifically, it looks at the channel between how trade reforms affect urban informal workers and how that in turn affects urban poverty. It offers a general equilibrium model relating international trade, informal sector, and poverty with a wider reach. The theoretical result predicts that informal wages should increase if there is trade liberalization and that there would be an expansion in the urban informal industrial base. The aggregate empirical exercise tests growth in informal wages and estimates if wage growth is capable of reducing urban poverty.
Stephen Meredith
- Published in print:
- 2008
- Published Online:
- July 2012
- ISBN:
- 9780719073229
- eISBN:
- 9781781701508
- Item type:
- chapter
- Publisher:
- Manchester University Press
- DOI:
- 10.7228/manchester/9780719073229.003.0005
- Subject:
- Political Science, Political Theory
This chapter investigates the parliamentary Labour right attitudes to industrial relations policy and trade union reform. In Place of Strife: A Policy for Industrial Relations was the first (recent) ...
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This chapter investigates the parliamentary Labour right attitudes to industrial relations policy and trade union reform. In Place of Strife: A Policy for Industrial Relations was the first (recent) attempt ‘to confine industrial relations within a framework of law’. The In Place of Strife controversy had the effect of consolidating emerging divisions between Tony Crosland and Roy Jenkins. James Callaghan combined his attack on the Industrial Relations Act with an appeal for still greater voluntary discipline on the part of the trade unions. The economic role of trade unions was important for the small ‘l’ liberal wing of social democrats. Debilitating divisions of the Labour right occurred across a range of key themes and issues of industrial relations and trade union reform. The distance between the preferences of moderate but radical social democracy and the ‘rules’ of the Labour movement represented perhaps the deepest gulf in British politics.Less
This chapter investigates the parliamentary Labour right attitudes to industrial relations policy and trade union reform. In Place of Strife: A Policy for Industrial Relations was the first (recent) attempt ‘to confine industrial relations within a framework of law’. The In Place of Strife controversy had the effect of consolidating emerging divisions between Tony Crosland and Roy Jenkins. James Callaghan combined his attack on the Industrial Relations Act with an appeal for still greater voluntary discipline on the part of the trade unions. The economic role of trade unions was important for the small ‘l’ liberal wing of social democrats. Debilitating divisions of the Labour right occurred across a range of key themes and issues of industrial relations and trade union reform. The distance between the preferences of moderate but radical social democracy and the ‘rules’ of the Labour movement represented perhaps the deepest gulf in British politics.
Pinelopi Koujianou Goldberg and Nina Pavcnik
- Published in print:
- 2007
- Published Online:
- February 2013
- ISBN:
- 9780226317946
- eISBN:
- 9780226318004
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226318004.003.0007
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter examines the impact of a large reduction in average tariffs in Colombia between 1984 and 1998 on a variety of urban labor market outcomes: the probability of becoming unemployed, minimum ...
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This chapter examines the impact of a large reduction in average tariffs in Colombia between 1984 and 1998 on a variety of urban labor market outcomes: the probability of becoming unemployed, minimum wage compliance, informal-sector employment, and the incidence of poverty. The Colombian trade reforms indicate that the cross-sectional variation in tariff changes provides an appealing policy experiment to study how trade policy changes have affected the Colombian economy. Poverty in urban Colombia is highly correlated with unemployment. The chapter shows that the trade policy affected the probability of becoming unemployed. The poverty reduction observed between 1986 and 1994 cannot be attributed to trade-policy-induced changes in informality or to minimum wage compliance. Thus, the descriptive results establish that poverty in urban areas is highly linked with unemployment, employment in the informal sector, and noncompliance with minimum wages.Less
This chapter examines the impact of a large reduction in average tariffs in Colombia between 1984 and 1998 on a variety of urban labor market outcomes: the probability of becoming unemployed, minimum wage compliance, informal-sector employment, and the incidence of poverty. The Colombian trade reforms indicate that the cross-sectional variation in tariff changes provides an appealing policy experiment to study how trade policy changes have affected the Colombian economy. Poverty in urban Colombia is highly correlated with unemployment. The chapter shows that the trade policy affected the probability of becoming unemployed. The poverty reduction observed between 1986 and 1994 cannot be attributed to trade-policy-induced changes in informality or to minimum wage compliance. Thus, the descriptive results establish that poverty in urban areas is highly linked with unemployment, employment in the informal sector, and noncompliance with minimum wages.
Petia Topalova
- Published in print:
- 2007
- Published Online:
- February 2013
- ISBN:
- 9780226317946
- eISBN:
- 9780226318004
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226318004.003.0008
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter evaluates the impact of trade reform in India on poverty. It suggests that the rural poor gained less from the trade reforms than other income groups or the urban poor. It also ...
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This chapter evaluates the impact of trade reform in India on poverty. It suggests that the rural poor gained less from the trade reforms than other income groups or the urban poor. It also illustrates that trade liberalization led to an increase in the poverty rate and the poverty gap in the rural districts where industries more exposed to liberalization were concentrated. In addition, the differential tariff changes across industries between 1991 and 1997 were as unrelated to the state of the industries as can be reasonably hoped for in a real-world setting. The most pronounced effects on poverty occurred in areas with inflexible labor laws (those that saw no change in industrial structure in response to trade liberalization) while inequality rose as a result of trade liberalization in areas with flexible labor laws.Less
This chapter evaluates the impact of trade reform in India on poverty. It suggests that the rural poor gained less from the trade reforms than other income groups or the urban poor. It also illustrates that trade liberalization led to an increase in the poverty rate and the poverty gap in the rural districts where industries more exposed to liberalization were concentrated. In addition, the differential tariff changes across industries between 1991 and 1997 were as unrelated to the state of the industries as can be reasonably hoped for in a real-world setting. The most pronounced effects on poverty occurred in areas with inflexible labor laws (those that saw no change in industrial structure in response to trade liberalization) while inequality rose as a result of trade liberalization in areas with flexible labor laws.
Mario A. González-Corzo and Armando Nova-González
- Published in print:
- 2019
- Published Online:
- October 2019
- ISBN:
- 9780190687366
- eISBN:
- 9780190687397
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780190687366.003.0005
- Subject:
- Law, Private International Law
Despite a dramatic growth in agricultural trade between the United States and Cuba, trade between these two states has been “one-way trade,” primarily due to U.S. economic sanctions. A new scenario ...
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Despite a dramatic growth in agricultural trade between the United States and Cuba, trade between these two states has been “one-way trade,” primarily due to U.S. economic sanctions. A new scenario could potentially emerge as diplomatic and trade relations between the United States and Cuba improve and are eventually normalized. These changes could facilitate the expansion of U.S. agricultural and food exports to the island, as well as Cuban exports to the United States. This chapter examines the evolution of U.S. agricultural exports to Cuba since the approval of the Trade Sanctions Reform and Export Enhancement Act (TSRA) in 2000. The future prospects and policy implications for U.S.-Cuba agricultural trade are also discussed, taking into account the shift in U.S–Cuba relations initiated after December 17, 2014.Less
Despite a dramatic growth in agricultural trade between the United States and Cuba, trade between these two states has been “one-way trade,” primarily due to U.S. economic sanctions. A new scenario could potentially emerge as diplomatic and trade relations between the United States and Cuba improve and are eventually normalized. These changes could facilitate the expansion of U.S. agricultural and food exports to the island, as well as Cuban exports to the United States. This chapter examines the evolution of U.S. agricultural exports to Cuba since the approval of the Trade Sanctions Reform and Export Enhancement Act (TSRA) in 2000. The future prospects and policy implications for U.S.-Cuba agricultural trade are also discussed, taking into account the shift in U.S–Cuba relations initiated after December 17, 2014.
Gerard Hertig
- Published in print:
- 2012
- Published Online:
- April 2015
- ISBN:
- 9780199660902
- eISBN:
- 9780191806902
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:osobl/9780199660902.003.0010
- Subject:
- Law, Company and Commercial Law
This chapter highlights how the voices of some interest groups are magnified in the ongoing EU trading and clearing reform process, using the European Commission proposals for over-the-counter (OTC) ...
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This chapter highlights how the voices of some interest groups are magnified in the ongoing EU trading and clearing reform process, using the European Commission proposals for over-the-counter (OTC) derivatives as a point of reference. It addresses transparency reform proposals with two examples that show how they are likely to benefit some special interests. The chapter also presents examples to illustrate how the voices of some interest groups are magnified when it comes to proposals aiming at mandating the use of trading platforms and clearing houses.Less
This chapter highlights how the voices of some interest groups are magnified in the ongoing EU trading and clearing reform process, using the European Commission proposals for over-the-counter (OTC) derivatives as a point of reference. It addresses transparency reform proposals with two examples that show how they are likely to benefit some special interests. The chapter also presents examples to illustrate how the voices of some interest groups are magnified when it comes to proposals aiming at mandating the use of trading platforms and clearing houses.
Rajesh Raj S.N. and Kunal Sen
- Published in print:
- 2016
- Published Online:
- June 2016
- ISBN:
- 9780199460847
- eISBN:
- 9780199086870
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199460847.003.0003
- Subject:
- Economics and Finance, Development, Growth, and Environmental
The contribution of small firms in employment and earnings has been a significant concern for policymakers in developing countries. Many policy instruments have been employed to promote the growth of ...
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The contribution of small firms in employment and earnings has been a significant concern for policymakers in developing countries. Many policy instruments have been employed to promote the growth of small firms in developing countries. India too has historically supported its small-scale sector and promotion of small-scale industrial sector gained significant importance as an element of industrial policy in India since Independence. These support policies and programmes have spawned considerable amount of literature documenting them and debating on the real effect of these policies, especially the protective measures on small firms. This chapter presents a thematic review of these studies and argues that there have been considerable changes in the policies and programmes supporting the small firms in the Indian manufacturing sector, especially since the onset of economic reforms of 1991.Less
The contribution of small firms in employment and earnings has been a significant concern for policymakers in developing countries. Many policy instruments have been employed to promote the growth of small firms in developing countries. India too has historically supported its small-scale sector and promotion of small-scale industrial sector gained significant importance as an element of industrial policy in India since Independence. These support policies and programmes have spawned considerable amount of literature documenting them and debating on the real effect of these policies, especially the protective measures on small firms. This chapter presents a thematic review of these studies and argues that there have been considerable changes in the policies and programmes supporting the small firms in the Indian manufacturing sector, especially since the onset of economic reforms of 1991.
Emma Aisbett
- Published in print:
- 2007
- Published Online:
- February 2013
- ISBN:
- 9780226317946
- eISBN:
- 9780226318004
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226318004.003.0002
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter explains both the “what” and the “why” of common criticisms of globalization's record on poverty and inequality. It is argued that this continued criticism is due to several factors: the ...
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This chapter explains both the “what” and the “why” of common criticisms of globalization's record on poverty and inequality. It is argued that this continued criticism is due to several factors: the use of different methodologies in estimating poverty and inequality, the concerns of the critics of globalization about the short-term costs versus the longer-term gains from trade reform, their rejection of a perfectly competitive framework, and different interpretations regarding the evidence. The opinions of the poor seem to suggest that the influence of globalization on their lives is less positive than measures of changes in their average income would suggest. It appears that the difference of opinion between globalization's supporters and critics can be largely explained by differences in prior views and priorities, as well as current ambiguities in the empirical evidence.Less
This chapter explains both the “what” and the “why” of common criticisms of globalization's record on poverty and inequality. It is argued that this continued criticism is due to several factors: the use of different methodologies in estimating poverty and inequality, the concerns of the critics of globalization about the short-term costs versus the longer-term gains from trade reform, their rejection of a perfectly competitive framework, and different interpretations regarding the evidence. The opinions of the poor seem to suggest that the influence of globalization on their lives is less positive than measures of changes in their average income would suggest. It appears that the difference of opinion between globalization's supporters and critics can be largely explained by differences in prior views and priorities, as well as current ambiguities in the empirical evidence.
Sebastian Edwards
- Published in print:
- 2007
- Published Online:
- February 2013
- ISBN:
- 9780226185002
- eISBN:
- 9780226185033
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226185033.003.0009
- Subject:
- Economics and Finance, International
This chapter investigates an important historical stabilization episode in Chile, a country with one of the longest histories of chronic inflation in the world, and which, starting in the late ...
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This chapter investigates an important historical stabilization episode in Chile, a country with one of the longest histories of chronic inflation in the world, and which, starting in the late nineteenth century, suffered recurrent and increasingly frequent inflationary outbursts. Of the many stabilization programs adopted to tackle this problem, the 1955–1958 package implemented with the advice of the United States consulting firm Klein-Saks, is, undoubtedly, one of the most fascinating. The chapter argues that the foreign advisors of the Klein-Saks Mission gave initial credibility to the stabilization program launched in 1955, playing the role of independent, nonpartisan technocratic arbiters. However, providing initial credibility was not enough to ensure success. In spite of supporting trade reform, foreign exchange rate reform, and the deindexation of wages, Congress failed to act decisively on the fiscal front.Less
This chapter investigates an important historical stabilization episode in Chile, a country with one of the longest histories of chronic inflation in the world, and which, starting in the late nineteenth century, suffered recurrent and increasingly frequent inflationary outbursts. Of the many stabilization programs adopted to tackle this problem, the 1955–1958 package implemented with the advice of the United States consulting firm Klein-Saks, is, undoubtedly, one of the most fascinating. The chapter argues that the foreign advisors of the Klein-Saks Mission gave initial credibility to the stabilization program launched in 1955, playing the role of independent, nonpartisan technocratic arbiters. However, providing initial credibility was not enough to ensure success. In spite of supporting trade reform, foreign exchange rate reform, and the deindexation of wages, Congress failed to act decisively on the fiscal front.
