Friedrich List and Dutch Disease: Two sides of the same coin? Kunibert Raffer

Comparing List’s development problem to Dutch Disease, as generalized by  Bresser-Pereira, one sees quite a few similarities. While the exchange rate was understandably of no concern to List, it is meanwhile one if not the most important determinant of trade flows. This generalized Dutch Disease approach is a valuable contribution to the debate on appropriate economic policies in Southern countries. It shows a way to counter mal-developments. It certainly deserves further discussion because quite a few countries suffer from
it. Bresser’s arguments fit very well into other unorthodox approaches that also tried to counter the inefficiency of really existing markets with workable proposals, which orthodoxy has quite successfully suppressed.

This paper also makes a proposal that might help for agro-exporting countries.

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(This article is originally published at Brazilian Journal of Political Economy, vol. 40, no 3, pp. 493-509, July-September/2020)