In El Salvador, despite extensive liberalization, privatization and stabilization with a sound contractual environment, nothing except garments took off (and only due to a special US trade privilege); investors asked what they would do with $25 million said they would rather put it in Miami, illustrating that the binding constraint was market failures associated with low income, not government failure.

factualpending

Speaker

Dani Rodrik

Evidence Quote

nothing except for garments had taken off and garments had taken off because of some special trade privilege in the US market

Source

Dani Rodrik on Globalization, Development, and Employment 04/11/2011EconTalk
Created: 6/16/2026, 2:24:26 PM

My Notes

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