ECN 503 Chapter Notes - Chapter 3: Human Capital, Public Choice, Thatcherism
6 Apr 2014
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Ch 3: classical theories of economic development: classical theories of ec dev 4 approaches. 4 strands of thought: the linear-stages of growth model. Successive stages of economic growth all countries must pass. Right mixture of saving, investment and foreign aid were all that were necessary. Development became synonymous with rapid, aggregate economic growth. Developmental theory 1- theories and patterns of structural change. Used modern economic theory & statistical analysis to portray internal process that. Typical developing country must undergo to generate and sustain rapid economic growth. Underdevelopment idewed in terms of internation, domestic power relationships, instituitional and structural economic rigidities and resulting proliferation of dual economies. ***note: dependence theories emphasize external and internal institutional and political constraints of economical development ******* need for new policies to eradicate poverty, provide diversified employment opp. Emphasized beneficial role of free markets, open economies, privatization of inefficient public enterprises. Failure to develop not because of exploitive external and internal forced (dev. theories)
