Professional Documents
Culture Documents
AS A GROWTH
AS THE MODERNIZATION
AS EMPOWERMENT
AS A FORM OF FREEDOM
AS ECOLOGICAL SUSTAINABILITY
The transition from underdevelopment to development can be described in a series of s stages through which all countries must proceed. takeoff into selfsustaining growth
Advanced Countries
Saving
Investment
Growth
= DEBT JUSTIFICATION!
Structural Transformation
1.the shift from agricultural to industrial production 2.the accumulation of physical and human capital 3.the change in consumer demands from emphasis on food and basic necessities to desires for diverse manufactured goods and services 4.the growth of cities and urban industries as people migrate from farms and small towns 5.the decline in family size and overall population growth
The rich (north) continued to dominate the third world in the terms of neoimperialism/ neocolonialism
The elite in the developing countries (the comprador) will take adventage from this exploitative economic system. So the wealth trickle down from the elite to the poor didnt materialise. instead, its a wealth sucking up from the poor to the elite
DEPENDENCY POLICY
Inappropriate advice provided by well-meaning but often uninformed, biased, and ethnocentric international expert advisers from developed- country assistance agencies and multinational donor organizations (VESTED INTEREST)
UNDERDEVELOPMENT
leading university intellectuals, trade unionists, high-level government economists, and other civil servants all get their training in developed-country institutions where they are unwittingly served an unhealthy dose of alien concepts and elegant but inapplicable
SUPERIOR ELEMENT
VS
INFERIOR ELEMENT
Rich People
Rich Countries
The world of dual-society
GAP
Poor People
GAP
Rich People
Poor Countries
GAP
Poor People
NEOKLASIK/NEOLIBERALISME
poor resource allocation due to incorrect pricing policies and too much state intervention by overly active developingnation governments
UNDERDEVELOPMENT
promoting free markets and laissez-faire economics within the context of permissive governments that allow the magic of the marketplace and the invisible hand of market prices
GROWTH
EFFICIENCY
Lord Peter Bauer, Deepak Lal, Ian Little, Harry Johnson, Bela Balassa, Jagdish Bhagwati, and Anne Krueger Jagdish Bhagwati NEOLIBERAL Anne Krueger
FREE-MARKET Markets alone are efcient Provide the best signals for investments; labor markets; producers, and consumers Competition is perfect
PUBLIC-CHOICE THEORY governments can do nothing right. Politicians, bureaucrats, citizens, and states act solely from a self-interested perspective, using their power and the authority of government for their own selsh ends
THE MARKET-FRIENDLY APPROACH Recognizes that there are many imperfections in developing-country product and factor markets Governments do have a key role to play in facilitating the operation of markets through interventions