D

r
a
f
t
International Political Economy #16
Crises in Developing Countries
William Kindred Wineco
Indiana University Bloomington
October 24, 2013
W. K. Wineco | IPE #16: Crises: Developing 1/7
D
r
a
f
t
Crises are a persistent feature of modern economies.
They are incredibly costly: average output gap of about 25% of GDP,
and about the same amount of wealth destroyed.
Recessions following nancial crises are longer than normal recessions
too.
Today: crises in developing countries.
Tuesday: crises in developed countries (esp the subprime/eurozone
crisis).
W. K. Wineco | IPE #16: Crises: Developing 2/7
D
r
a
f
t
W. K. Wineco | IPE #16: Crises: Developing 3/7
D
r
a
f
t
W. K. Wineco | IPE #16: Crises: Developing 4/7
D
r
a
f
t
The Framework
The argument I want to develop is that nancial crises reveal:
Contradictions contained within development models.
Ineciencies in political economies.
Areas in need of reform.
And (often) originate through:
Particular patterns of interdependence: S I = X M.
Well spend the rest of the time on the blackboard.
W. K. Wineco | IPE #16: Crises: Developing 5/7