ECON 315 Lecture Notes - Lecture 9: Maquiladora, Washington Consensus, Planet Money
23 Jun 2017
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Document Summary
Planet money podcast: episode 755: the phone at the end of the world -- 300 words for 1 pt. Main idea is to find the main problem and try and get over it to grow quickly. Constrained by a lack of public goods in sectors key for growth. The country began a new reform sequence during the 1980s after it could no longer rely on sugar and gold exports. It followed a narrow strategy of investing in needed public goods for two emerging sectors with high potential, tourism, and maquila assembly manufacturing. The keys were security and infrastructure near the main tourist destinations and special trade policy benefits for the light manufacturing assembly (maquila) sector. As the economy grew from these sources, other constraints were hit, notably in the financial sector. Today, need to get past these constraints to keep the maquila and tourism sectors growing. Difficult to reject constraints as not binding.
