POL201Y1 Lecture Notes - Industrial Revolution, Government Failure, Profit Motive
Document Summary
Government success in development: the case of east asia. Role of the state in generating development. What generates economic development and industrial growth, why does it happen in some places and not others, what accounts for the difference: this is answered through the perspective of the market and the state. The market: the market refers to the basic nature of human beings, adam smith: people have a natural propensity to truck and barter. Therefore the market is run by demand (refer to 1st part of heilbroner) The case of the industrial revolution in britain provides a case study for development and modernity and supply and demand of the market. Secure intellectual property (patent system can help inventors make profits) Ensuring a supply of capital (aka banks @ the time financed privately for people to take out loans: the state does not have its own development agenda but rather creates minimal conditions that allow a market to develop.
