(1) Read Wing Thye Woo "The Art of Economic Development: Markets, Politics and Externalities", and answer the following questions:

(a) What is the Jeffrey Sachs explanation for why East Asian countries adopted export-promoting industrialization, and why Latin America adopted import-substituting industrialization

(b) Explain how high inflation and currency overvaluation in Latin American countries have always given them an anti-export bias?

(2). Read Wing Thye Woo, "The Real Reasons for China's Growth"; and Wing Thye Woo, "Recent Claims of Chinese Economic Exceptionalism: Reflections inspired by WTO Accession." There are two main explanations for China's high growth in the last 20 years: the Experimentalist school and the Convergence school.

a: What are their differences, and critically evaluate the two explanations?

b: What is the relationship (if any) between these two explanations and the debate over big-bag reform and gradual reform?

c: Lawrence Lau, Yingyi Qian and Gerard Roland claim that the dual-track pricing made China's reform painless. Explain the economic mechanism they identified as being responsible for the painless transformation of China from central planning to a market economy. Is their explanation in accordance with the fact? Illustrate your answer with graphs to show what allegedly, and what really, happened in China.