The indebted-development strategies of the newly industrializing countries (NICs) have over the last two decades attracted much concern, both practical and scholarly. Herman M. Schwartz here examines a largely ignored historical parallel to the experience of the modern NICs—the formal and informal British dominions of the late nineteenth century, some of which achieved outstanding growth rates by borrowing abroad to finance agricultural development at home. Arguing that continued dependency is compatible with both development and economic growth, Schwartz offers an innovative reinterpretation of dependency theory in light of the economic development of Australia, Argentina, and New Zealand, and of the development strategies of today's South Korea.
Herman M. Schwartz is Professor of Politics at the University of Virginia. He is author of States vs. Markets: The Emergence of a Global Economy and In the Dominions of Debt: Historical Perspectives on Dependent Development and coeditor of several books, including most recently The Politics of Housing Booms and Busts.