Competitiveness and Development : Myth and Realities

In 'Competitiveness and Development', the author explains confusions surrounding the concept of competitiveness in the context of developing countries; proposes policies for achieving competitiveness at high level of development; examines its possibilities and constraints; and suggests policy changes necessary at the national and international levels. Shafaeddin illustrates how developed countries impose restrictive policies on developing countries through international financial institutions and WTO, as well as regional and bilateral agreements, limiting their policy space for promoting dynamic comparative advantage in order to achieve competitiveness at high level of development. Ultimately, such policies lock developing countries which are at early stages of development in specialization based on static comparative advantage and competitiveness at a low level of development.