Friday, 19 April 2013

Margaret Thatcher's lesson for the BRICS

By Noshua Watson

Margaret Thatcher’s legacy will always be judged by the consequences of economic liberalisation. In the FT, Erik Berglof, Chief Economist of the EBRD, discusses the consequences of liberalisation and privatisation in eastern Europe after 1991 which were influenced by Thatcher’s policies. He writes that Thatcher’s idea of using EU accession as encouragement for economic reform led to more balanced transition, higher growth and lower economic inequality in countries like Czech Republic and Slovakia. In countries like Ukraine and Russia, where EU accession was not an option, highly-inequal, elite-dominated economies emerged.

Berglof argues that Thatcher understood the link between political context and liberalisation policies, although that was not fully appreciated by those who followed her. He encourages India and China to continue moving away from directing the resource allocation and investments of private enterprises, while promoting good governance, competition and equality.

Thatcher’s lesson for the BRICS is that domestic policy and foreign policy go hand in hand. It is a tricky game for the BRICS to play both donor and recipient. As the BRICS consolidate as a bloc and expand their own regional influences, they need to focus on domestic growth and stability as well as growing their foreign aid budgets. Whilst maintaining macroeconomic growth, the BRICS still need to continue to reduce poverty by attracting skilled jobs, investment in infrastructure, better regulation and attracting FDI. The aim of separating the State from the private sector was to get the State out of the business of choosing ‘winners’ and ‘losers’. As Mrs Thatcher learned, the same principle holds when it comes to people.


Emilie Wilson said...

Hi Noshua - thanks for your thought-provoking post today (with an emphasis on 'provoking'!)

Did you see this article in the Guardian on Thatcher and neoliberalism?

Mark said...

There is a vast literature on the political economy of Central and East European accession to the EU and what it meant for structures of inequality, growth and human development in those countries. Needless to say, hardly any of it corresponds to this analysis.

Zheng junxai5 said...

louis vuitton outlet
burberry outlet online
fitflop shoes
replica watches
oakley sunglasses outlet
louis vuitton outlet
toms shoes outlet
true religion jeans
giuseppe zanotti sandals
louis vuitton bags
rolex watches
supra footwear
michael kors outlet
oakley outlet
louis vuitton outlet
coach outlet canada
tods outlet store
polo ralph lauren
adidas originals
adidas superstar trainers
coach outlet clearance
jordan 11
cheap jordans
true religion jeans
instyler max
longchamp le pliage
gucci outlet online
oakley canada
true religion sale
gucci handbags
kate spade handbags
louis vuitton purses
michael kors outlet online
tods sale
michael kors outlet
michael kors outlet clearance
asics running shoes
ladies cartier watches
hermes outlet
ralph lauren

Obat Wasir Tanpa Operasi said...

If the disease is not treated immediately, then everything will result in harm to the health of the body. Thank you for sharing the information

Penanganan Dan Pengobatan Kejang Demam Pada Anak
Pengobatan Patah Tulang
Obat Ampuh Sembuhkan Penyakit Malaria
Cara Mengobati Ginjal Bengkak
Obat Ginjal Bocor Untuk Semua Usia
Pengobatan Diare Paling Ampuh Sampai Sembuh

ninest123 said...

red bottom shoes
adidas nmd
james harden shoes
jordan shoes
birkenstock sandals
adidas yeezy boost
ray ban sunglasses
air max 2018
pandora jewelry

liuchunkai said...

ray ban wayfarer
cheap oakley sunglasses
mulberry bags
coach outlet clearance
coach handbags
nike roshe run
hermes outlet
tory burch outlet online
longchamp bags
true religion outlet