Introduction: Key Theoretical Divides and Directions

Abstract

Economic shocks and crises inflict severe pain on the less well-off in societies with the lower and middle classes often bearing the brunt of restructuring (see Chapters by Cevdet and Riggirozzi). While social costs demand our full attention, crises are also particularly important events for the larger debates over economic ideas that they set in motion. Moments of crisis show economic paradigms in clear view and the ensuing contest of models opens up the possibility of economic change (Gourevitch 1986). In the case of developing and emerging markets, these contests highlight power structures and relationships in the international and the domestic political economy. In theory, international actors should gain greater leverage in crisis-weakened developing countries, even though some domestic forces are likely to try their best to resist foreign interventions.