Safety Nets in Troubled Times: Lessons from Indonesia’s Crisis
Lant PritchettThe old Model T automobile had few safety devices but, of course, with a 20 horsepower engine it couldn’t go very fast either. Faster, more powerful cars brought benefits but, also greater risks, requiring the creation of more safety features. The accelerating integration of international markets for goods, services, ideas, labor and capital also brings risks alongside benefits. An internationalized economy unable to temper the adverse social consequences of the inevitable shocks and crises is like an automobile with the power of a sports car but the safety features of a Model T.