Exporting Capitalism: Private Enterprise and US Foreign Policy

The first comprehensive history of Americas attempts to promote international development by exporting private enterprise, a story marked by frequent failure and occasional success. Since the 1940s, the United States has relied on the private sector to carry out its ambitions in the developing world, but corporations preferred advanced countries, and many developing nations were cool to foreign investment. The Cold War made exporting capitalism more important than ever, but ongoing conflict eroded such hopes. Kapsteins sobering history shows that private enterprise is no substitute for foreign aid, and only in settings with stable governments and diverse economic elites can private enterprise take root.

Format: Hardback
Length: 304 pages
Publication date: 24 June 2022
Publisher: Harvard University Press

The United States has long used foreign aid as a key component of its foreign policy, but direct financial support and initiatives like the Peace Corps only make up a small portion of the country's overall efforts in global development. Since the 1940s, the United States has relied on the private sector to carry out its ambitions in the developing world. This is the first comprehensive account of what has worked and, more often, what has failed in efforts to export American-style capitalism.

Ethan Kapstein, drawing on archival sources and his extensive experience in international development, provides penetrating case studies from Latin America, East Asia, the former Soviet Union, Afghanistan, and Iraq. After World War II, the Truman and Eisenhower administrations urged US companies to expand across the developing world. However, corporations preferred advanced countries, and many developing nations, including Taiwan and South Korea, were cool to foreign investment. The Cold War made exporting capitalism more important than ever, even if that meant overthrowing foreign governments.

The fall of the Soviet Union brought new opportunities as the United States promoted privatization and the bankrolling of local oligarchs. Following the invasions of Afghanistan and Iraq, the United States believed it had blank slates for building these economies, but ongoing conflict eroded such hopes.

Kapstein's sobering history shows that private enterprise is no substitute for foreign aid. Investors are often unwilling to put capital at risk in unstable countries. Only in settings with stable governments and diverse economic elites can private enterprise take root. These lessons highlight the importance of a comprehensive approach to global development that combines both private sector engagement and foreign aid.

Weight: 582g
Dimension: 168 x 242 x 28 (mm)
ISBN-13: 9780674251632