Balanced
Dani Rodrik: Why East Asia's manufacturing-led growth model may no longer help economies emerge
The author, a former manufacturing growth advocate, now critically assesses its declining viability for developing economies. He argues the East Asian model no longer works; manufacturing now creates limited enclaves (e.g., Mexico) due to high skill and technology demands. He proposes a new model emphasizing productivity gains in labor-absorbing, non-tradable services. India and Sub-Saharan Africa illustrate this service-driven growth potential. Governments are crucial for facilitating these enhancements, offering an inclusive development path for most workers.
LiveMint · Dani Rodrik · May 20, 2026 at 8:30 AM