POL201Y1 Lecture Notes - Lecture 8: Trade Union, Global Financial System, Government Failure
Document Summary
Government success in development oct 30 th. A nation of contradictions, an east asian development model, taiwan"s economic history. The point of this lecture is to look at differences in state intervention in different areas of the world. Isi in latin america, agricultural policy in africa, state-led economy in asia. 2 ways to answer this: markets and structure. Market: the market is supposed to drive development because of the basic nature of human beings. Adam smith: humans have a natural propensity to barter and truck. The market will generate spontaneously once labour is freed up and pushed off the land and there"s an agricultural surplus. All these conditions lay the groundwork for industrialization and it will just take off. So development is driven by entrepreneurs and investors. All potential obstacles of the market are self-solving. It is the law of supply and demand, the unseen hand. Supply will rise and fall to meet demand.
