ECON 313 Chapter Notes - Chapter 3: Comprador, Capital Accumulation, Real Wages
5 Oct 2015
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Document Summary
Theorists of the 1950s and 1960s viewed the process of development as a series of successive stages of economic growth through which all countries must pass. Development thus became synonymous with rapid, aggregate economic growth: theories and patterns of structural change. The second, the international-dependence revolution, was more radical and more political. This neoclassical (sometimes called neoliberal) counterrevolution in economic thought emphasized the beneficial role of free markets, open economies, and the privatization of inefficient public enterprises. Failure to develop, according to this theory, was not due to exploitive external and internal forces as expounded by dependence theorists. Rather, it was primarily the result of too much government intervention and regulation of the economy. One of the principal strategies of development necessary for any takeoff was the mobilization of domestic and foreign saving in order to generate sufficient investment to accelerate economic growth.
