The present international economic system, largely designed and led by the U.S. since World War II, is being challenged by questions of how international markets should operate and who should benefit from them. The call for a New International Economic Order (NIEO) that would be of economic benefit to less-developed countries (LDCs) has been hotly debated. A review of the present system questions its assumptions of efficiency and competition and suggests that a North-South dialogue for change is appropriate. Arguments for this conclusion are that (1) developed countries desire raw materials but limit the number of unskilled workers from LDCs; (2) corporate management of international transactions tends to minimize competition in the marketplace; and (3) worldwide unemployment and low productivity are an indication that increased LDC participation is needed. While some of the push for NIEO may come from capitalist countries seeking to emulate Japan, the possibility that LDCs will benefit should not be ruled out. 7 references.

Exchange-Rate Devaluation in a Semi-Industrialized Country analyzes the impact of the exchange rate on the domestic economy and the balance of payments of Argentina during the period 1955-1961. It contains a study of the short-run mechanism of adjustment of the balance of payments of that country during the nineteen-fifties and early sixties, concentrating especially on an analysis of the effects of the December 1958 devaluation of the peso. This book is one of the few case studies to consider fully the impact of devaluation in semi-industrialized economies. After reviewing the existing theoretical literature on devaluation, the author presents a model that deals explicitly with the redistributive effect. This model serves as a guide to the empirical analysis of other chapters in the book and is far more usable than the standard devaluation models normally employed. Other chapters study the demand and supply conditions for importable and exportable goods in Argentina. The mechanics of the inflationary process are also discussed. The last two chapters present a detailed description of the evolution of the Argentine economy during 1955-1961 and the conclusions reached by this study. Exchange-Rate Devaluation in a Semi-Industrialized Country contains an intensive analysis of the redistributive effect, and its main conclusion is that one must take explicitly into account the redistributive effect when analyzing the impact of devaluation in a semi-industrialized country. In recent years a great debate has arisen on the appropriateness of economic policies recommended by the International Monetary Fund in several Latin American countries, aimed at correcting disequilibrium in the balance of payments; this book can be useful in providing an objective account of one experience where the I.M.F. policies were at least partially followed. This book will prove valuable to the economist as well as to anyone interested in international and, especially, Latin American economics. Volume No.5 in the M.I.T. Economics Monograph Series