An academic paper submitted to the Faculty of the Hamilton University in partial fulfillment of the requirements for the degree of Philosophy Doctor (Ph.D.) in International Economics.

1. Old and new economic theories: introduction -- neoclassical paradigm and the power of economic ideas -- the competitive paradigm -- old market failures -- paradigm change, information economics -- new market failures -- state interventions -- choosing between the market and the state -- briefing of new relevant theories -- the economics of information paradigm -- the theory of contests -- institutional economics -- 2. The Washington Consensus: introduction -- evaluation of the program -- adjustment policies, macroeconomic stability -- structural reforms -- the new and the post Washington Consensus -- Conclusion -- 3. The role of the state in evolutionary economics: introduction -- the role of the state in the economic transformation, empirical evidence -- the case of Latin America -- debt crisis -- macroeconomic stabilization -- structural reforms -- 4. The institutional framwork: introduction -- do institution matter? -- a comprehensive paradigm -- the role of he state and the quality of the public sector -- bibliography.