Building Entrepreneurial Economies

By C. Schramm. 2004

120 citations recorded by the source corpus.

The United States, using its own direct-aid programs and its influence over development agencies, has encouraged other nations to adopt the features and institutions of post-Cold War American capitalism. But this approach the so-called Washington consensus has often yielded disappointing results. Many economies in Latin America, eastern Europe, and elsewhere are stagnant or backsliding, and most of the world’s poorest economies show few signs of new life. Going forward, the American economic model should not be abandoned, as some development economists advocate, but it must be improved. The current template is incomplete. In particular, it fails to reproduce a vital element of the U.S. economy: support for entrepreneurship. Not only does the United States have a high rate of new business starts, it breeds a constant flow of new high-impact firms the kind that create value and stimulate growth by bringing new ideas to market, be they new technologies, new business methods, or simply new and better ways of performing routine tasks. These firms do not appear automatically, as a natural by-product of having free-market institutions. Nor are they the result of any single factor. Rather, the United States has evolved a multifaceted ‘‘system’’ for nurturing high-impact entrepreneurship a system that, with the right development policies, might be cultivated in many other countries as well. Such an approach has been missing so far. The Washington consensus focuses on macroeconomic issues such as finance and trade, along with general institution building. Nations are urged to create good banking systems, reasonable interest and exchange rates, and stable tax structures. They are expected to privatize, deregulate, and invest in infrastructure and basic education. Entrepreneurship, meanwhile, is considered only as an afterthought and in piecemeal fashion. Some policymakers, for instance, have Transition Studies Review (2005) 12 (1): 163 171 DOI 10.1007/s11300-005-0043-4 Transition Studies Review Springer-Verlag 2005 Printed in Austria

Subfields: Political Science and International Relations

View Paper: https://www.semanticscholar.org/paper/defc7d630e4ae4f2665db0fc1af8d6c298475e60

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Political Science and International Relations

Citations in the corpus

Entrepreneurship in Developing Countries (2010, unknown): “Schramm correctly pointed out that education, both at the primary and the tertiary levels is important for entrepreneurship in developing countries and provides the example of India’s Institutes of Technology which have allowed “high-impact entrepreneurs [to] emerge” ([129], p.”
Which model of capitalism best delivers both wealth and equality? (2014, background): “The “Washington Consensus” has dominated proposals for economic reforms within developing and transition economies, under the assumption that the Anglo-American model of laissez-faire capitalism works best (Schramm, 2004).”
Entrepreneurship, Economic Growth and Public Policy (2007, background): “that generally favors the formation and growth of new ventures (Schramm, 2004).”
The Impact of Business Environment Reforms on New Firm Registration (2010, unknown): “For instance, policymakers in the U.S. have called for more government support of entrepreneurs in order to help the US to regain a competitive lead in the world economy (Schramm, 2004, and Baumol, 2007).”