Deregulation and growth (letter)by Colin TeeseNews Weekly
, February 22, 2003
I have just read Mr Peter Golding's letter (NW, January 11
) I had no quarrel with his observations, but the study from which I drew my information had a different purpose.
From the start, it made perfectly clear that its purpose was not to assert a causal relationship between the better percentage growth rates for the period 1960-80 during the period interventionist capitalist policies were applied, but to contradict the opposite assertion - made without supporting evidence made by market fundamentalists: that globalisationist and deregulationist policies of the next twenty years had delivered better economic outcomes.
The following points are crucial.
The study examined data on all countries for which it was available. In eighty nine (77%), growth rates fell by at least five percentage points when 1960-80 is compared to 1980-2000. Only fourteen countries (13%) saw their growth rates rise by that much from 1980-2000. Even in South East Asia, growth rates were better in the earlier period.
The only regional exception was East Asia, which grew faster in the latter period. This was due to the quadrupling of GDP in China which dominates the area and which, in any case, did not embrace the deregulationist policies.
Much more can be said but if Mr Golding is interested he should acquire the study for himself. I am certain News Weekly
could supply him with a copy.Colin Teese,