The author argues that the Mexican peso crisis of the mid-1970s was a direct forerunner of the Asian crises of 1997. The Mexican miracle collapsed just a year after NAFTA was signed, and the author looks back to learn lessons that are applicable today.

Development economists have been highly skeptical about the value of direct aid. But the author argues the skepticism has been overstated. Aid has worked, he strongly argues, but sensible guidelines are needed.