For over a decade the
most common policy advice
given to developing countries
Line by international development
(5) institutions has been to copy
the export-oriented path of the
newly industrializing countries,
the celebrated NIC's. These
economies-Brazil, Hong
(10) Kong, Mexico, Singapore,
18
South Korea, and Taiwan-
burst into the world manufac-
turing market in the late 1960's
and the 1970's; by 1978 these
(15) six economies, along with India,
enjoyed unequaled growth
rates for gross national product
and for exports, with exports
accounting for 70 percent of
(20) the developing world's manu-
factured exports. It was,
therefore, not surprising that
dozens of other countries
attempted to follow their model,
(25) yet no countries-with the pos-
sible exceptions of Malaysia
and Thailand-have even
approached their success. In
"No More NIC's," Robin Broad
(30) and John Cavanagh search for
the reasons behind these fail-
ures, identifying far-reaching
changes in the global econ-
omy-from synthetic substitutes
(35) for commodity exports to
unsustainable levels of foreign
debt-as responsible for a glut
economy offering little room for
new entrants. Despite these
(40) changes, the authors maintain,
the World Bank and the Inter-
national Monetary Fund-the
foremost international devel-
opment institutions-have
(45) continued to promote the NIC
path as the way for heavily
indebted developing countries
to proceed. And yet the futility
of this approach should,
(50) according to the authors, be
all too apparent so many years
into a period of reduced growth
in world markets.
The author of the passage most clearly implies that
Broad and Cavanagh disagree with the World Bank and the International Monetary Fund about which of the following?
A. The ways in which the global economy has changed
in recent years
B. The causes of the unsustainable levels of foreign
debt that the developing countries have incurred in
recent years
C. The level of foreign debt that should be maintained
by developing countries
D. The degree to which international development
institutions should monitor the growth of developing
countries
E. The degree to which heavily indebted developing
countries should emphasize exports in their overall
economic strategy
OA: E
most common policy advice
given to developing countries
Line by international development
(5) institutions has been to copy
the export-oriented path of the
newly industrializing countries,
the celebrated NIC's. These
economies-Brazil, Hong
(10) Kong, Mexico, Singapore,
18
South Korea, and Taiwan-
burst into the world manufac-
turing market in the late 1960's
and the 1970's; by 1978 these
(15) six economies, along with India,
enjoyed unequaled growth
rates for gross national product
and for exports, with exports
accounting for 70 percent of
(20) the developing world's manu-
factured exports. It was,
therefore, not surprising that
dozens of other countries
attempted to follow their model,
(25) yet no countries-with the pos-
sible exceptions of Malaysia
and Thailand-have even
approached their success. In
"No More NIC's," Robin Broad
(30) and John Cavanagh search for
the reasons behind these fail-
ures, identifying far-reaching
changes in the global econ-
omy-from synthetic substitutes
(35) for commodity exports to
unsustainable levels of foreign
debt-as responsible for a glut
economy offering little room for
new entrants. Despite these
(40) changes, the authors maintain,
the World Bank and the Inter-
national Monetary Fund-the
foremost international devel-
opment institutions-have
(45) continued to promote the NIC
path as the way for heavily
indebted developing countries
to proceed. And yet the futility
of this approach should,
(50) according to the authors, be
all too apparent so many years
into a period of reduced growth
in world markets.
The author of the passage most clearly implies that
Broad and Cavanagh disagree with the World Bank and the International Monetary Fund about which of the following?
A. The ways in which the global economy has changed
in recent years
B. The causes of the unsustainable levels of foreign
debt that the developing countries have incurred in
recent years
C. The level of foreign debt that should be maintained
by developing countries
D. The degree to which international development
institutions should monitor the growth of developing
countries
E. The degree to which heavily indebted developing
countries should emphasize exports in their overall
economic strategy
OA: E
