Beyond GDP: the Debate on Globalization&Development (By Invitation‪)‬

Shifting Economic Growth Paradigms The dominant economic growth paradigms during immediate post-War II years and until about the last decade of the previous century were somewhat sharply divided. While nations in Eastern Europe and South Asia, among others, followed Keynesian prescriptions which clearly recognized the role of the state in directing the development process through a strict regulation regime including in the financial sector, economies like the USA, UK, Western Europe and others went ahead with the dictum that free markets are a sine qua non for sustainable growth. In the latter group of countries the state's role was significantly reduced and markets, principally the financial markets, were deregulated (for example, repeal of the Glass-Steagall Act in the United States in 1999).