Has Jeffrey Sachs changed his tune...

[Mathew Forstater]

1) "As fast as *possible*" is a very qualified degree of fastness.  For many,
"shock therapy" represents instituting reforms, etc. that are inappopriate and
damaging because they are "faster than possible" i.e, too much too fast, too
soon.  Of course, there are also the issues of the substance of the very
reforms themselves and the goals to be achieved, etc.

2) The other approach to transition being "gradualism" how do you compare the
results of say Russia vs. China, Brad?

Mat

Brad De Long wrote:


> Two separate issues:


> "Shock therapy" is a judgment that you need to get from
> bureaucratic-industrial feudalism to the capitalist mode of production
> *as*fast*as*possible* because to be stuck in the middle (as Russia is
> today) is the worst of both worlds.
>
> "Debt forgiveness" is a judgment that first-world creditor attempts to get
> third-world countries to repay past loans that have gone bad is doing
> enormous damage to third-world attempts at development.
>
> Both judgments still look to me to be correct: looking at Poland, Russia,
> Ukraine, and Romania makes me think that shock therapy was the best of a
> very bad set of options. Looking at Africa and Latin America since 1979
> makes me think that debt forgiveness is essential...
>
> Brad DeLong