Rodrik claims that "The liberal model has become severely tarnished, owing to the rise in inequality and the plight of the middle class in the West, together with the financial crisis that deregulation spawned." But the reason for this is precisely because for the past 6 decades it hasn't only been the Asian countries that have pursued Mercantlist policies (as Rothbard explained 50 years ago).
So while Rodrik is basically right when he says: "The history of economics is largely a struggle between two opposing schools of thought, liberalism' and 'mercantilism.'" He is off the mark when he states that: "Economic liberalism, with its emphasis on private entrepreneurship and free markets, is today’s dominant doctrine." This is true only in rhetoric, but not in the reality of economic policy practice.
I often wonder what world folks are looking at, let alone studying, when they make claims that the laissez faire model of economic liberalism is dominant. Every where we turn in our economic lives we can see the grabbing hand of the state. Throughout the western world we have bloated public budgets, the manipulation of money and credit, obstructionist regulations, and numerous measures to weaken the discipline of profit and loss. In short, we have state controlled market economies. We are living the policy reality of mercantilism, while rhetorically emphasizing economic liberalism.
Time to read Rothbard closely and straighten this mess out.