A New Growth Strategy for Developing Nations by Dani Rodrik and Joseph E. Stiglitz. In: The New Global Economic Order. London and New York: Routledge; 2026.
This chapter argues that we are at a turning point in development strategy. Strategies that worked well in the past are unlikely to do so in the decades ahead. In particular, the manufacturing- and export-based growth strategies that drove East Asia’s development miracles are no longer suited for today’s low-income countries; at the very least, they are insufficient. New technologies, the climate challenge, and reconfiguration of globalisation require a new approach for development, emphasising two critical areas—the green transition and labour-absorbing services. Unfortunately, policymakers do not have ready-made formulas or successful models to emulate. Confronting this challenge head-on will require building greater capacity to understand new opportunities, constraints, and what works and does not as governments experiment with new policies on a number of fronts.