----- Original Message ----- From: "Wojtek Sokolowski" <sokol at jhu.edu> WS: I think that you remarks about elite corruption are right on the target, however, terms of international trade are of secondary importance. The problem is not that foreign producers are being cheated on the sale of their products (I do not thing they are), but insufficient local demand that makes it more profitable to export than sell domestically. The insufficiency of the local demand could be ameliorated by aggressive Keynesian policies, but such policies are difficult to implement in the countries in question due to a variety of reasons, ranging from local corruption, to insufficient industrial infrastructure, and to ideological opposition from the IMF and Washington.