By Peter Passell
Originally published on Fri February 10, 2012 8:31 am
Peter Passell, the Economics Editor of Democracy Lab, is a Senior Fellow at the Milken Institute.
Note that Dutch disease may or may not hurt an economy as a whole; not every country needs a healthy manufacturing sector to thrive. But there's a case to be made (especially in the case of poor countries) that manufactured exports generate all sorts of positive spillovers that spur development. For example, large-scale manufacturing creates a demand for sophisticated finance and management, both of which are foundations to economic growth.
Read more