Argentina is a fascinating and baffling case to scholars of economic development. It has rich agricultural resources, a fully monetized economy, a domestic manufacturing sector that occupies a large share of the active labor force, a relatively high level of literacy, and other attributes that resemble a European nation more than a developing country. At the same time, Argentina has found it difficult to develop the institutions of a modern nation-state and to sustain a satisfactory rate of economic growth. This book is a new and vigorous attempt to explain the Argentinian paradoxes.

The authors' central hypothesis is that the conventional framework of economic analysis is ill-suited for policymaking in a pluralistic society; in such a society, successful macroeconomic policy management depends on support from viable political coalitions. In the absence of a repressive dictatorship, decision makers in Argentina, the authors maintain, have consistently attempted to adopt policy positions seemingly designed to tear society apart. Does this mean that no mediative policy alternatives exist which are more congenial to political pluralism? The authors present some answers to this important question by examining the Argentine balance of payments and stabilization policies. Their conclusions about macroeconomic policymaking are not only significant for Argentinian policymaking, but are also relevant for other semi-industrial societies.

This volume looks at the changing face of policy advising from the perspective of the author's forty years of work in and for developing countries. Both a personal memoir and an essay on the nature of the development profession, the book will be of particular interest to those just starting their careers as policy advisers.

The main lesson to be learned, says the author, is that "there is no common formula for solving a country's problems. Each society must come up with its own formula, in which economic policy is only one important variable in a complex equation. We missionaries can best help our counterparts carry out this daunting task by teaching more than preaching, and by insisting that they themselves take full responsibility for their recommendations and actions."

Richard D. Mallon is a Fellow Emeritus of the Harvard Institute for International Development. He has provided macroeconomic policy and planning advice in fifteen countries.