MGEC81H3 Lecture Notes - Lecture 3: No Knife, Production Function, Diminishing Returns
1 May 2016
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Document Summary
The false paradigm model - anti imf: attributes under development to the faulty and inappropriate advice provided by well- meaning but biased and ethnocentric international expert advisers . The policy prescriptions serve the vested interests of existing power groups, both domestic and international. The dualistic- development thesis: dualism represents the existence and persistence of increasing divergences between rich and poor nations and rich and poor peoples at all levels. These models do not offer any policy prescription for how poor countries can initiate and sustain economic development. The actual experience of developing countries that have pursued a closed-door economic policy has not been positive: doesn"t suggest anything, saying don"t trade although history suggests youre worse off if you close your borders. Laissez faire don"t intervene: neoclassical counterrevolution in the 1980s called for freer markets, and the dismantling of public ownership, and government regulations. Let the markets decide: against barriers and tarrifs. Public-choice theory- governments can do nothing right.
