| Original language | English |
|---|---|
| Pages (from-to) | 447-462 |
| Number of pages | 16 |
| Journal | New Political Economy |
| Volume | 13 |
| Issue number | 4 |
| DOIs | |
| State | Published - 2008 |
Bibliographical note
Funding Information:Economic liberalisation went hand in hand with massive state intervention and expansion. In some areas the role of the state decreased, while it increased in other areas. The currency peg was abolished and the regulation of foreign capital inflow was liberalised, but interventions into currency markets by the central banks have increased. Government protection of employment is weakened, but welfare spending increased substantially. In the field of industrial policies, the government stopped directly ordering banks to finance certain sectors of the economy. On the other hand, the government now provides credit guarantees and direct subsidies for sectors such as IT. In the past, development was financed by government-directed policy loans, whereas now it is supported by direct government subsidies and guarantees.