Friedrich List and Dutch Disease: two sides of the same coin?

Vol. 40 No. 3 (2020)

Jul-Sep / 2020
Published June 22, 2020

How to Cite

Raffer, Kunibert. 2020. “Friedrich List and Dutch Disease: Two Sides of the Same Coin?”. Brazilian Journal of Political Economy 40 (3), 493-509.

Friedrich List and Dutch Disease: two sides of the same coin?

Kunibert Raffer
Department of Economics, Universität Wien (retired), Wien, Austria
Brazilian Journal of Political Economy, Vol. 40 No. 3 (2020), Jul-Sep / 2020, Pages 493-509


Comparing List’s development problem to Dutch Disease, as generalized by Bresser-Pereira, one sees quite a few similarities. While the exchange rate was understandably of no concern to List, it is meanwhile one if not the most important determinant of trade flows. This generalized Dutch Disease approach is a valuable contribution to the debate on appropriate economic policies in Southern countries. It shows a way to counter maldevelopments. It certainly deserves further discussion because quite a few countries suffer from it. Bresser’s arguments fit very well into other unorthodox approaches that also tried to counter the inefficiency of really existing markets with workable proposals, which orthodoxy has quite successfully supressed. This paper also makes a proposal that might help for agro-exporting countries.

JEL Classification: F10; O10; B50.

Keywords: Dutch Disease, List, infant industry, unorthodox approaches, exchange rate