By G. Mavrotas, A. Shorrocks

This ebook displays on present considering in improvement economics and on what might occur over the subsequent 20 years. in addition to learning improvement economics looking back, the quantity explores the present debates and demanding situations and appears ahead on the difficulties that have an effect on the worldwide capability to accomplish the Millennium improvement Goals.

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The provision of a greater level of public resources to that sector – combined with less discriminatory price policies – were expected to result in a growth of output and productivity which would facilitate a net transfer back to the rest of the economy. The success of South Korea and Taiwan in nurturing their agricultural sector and using the agricultural surplus to achieve a successful industrial take-off was starting to resonate. 4 summarizes the major development objectives, theories, data sources and policies prevailing in the 1970s.

1 Such an objective would have been inconsistent with the underlying division of labour and trading patterns within and among colonial blocks. It was not until the end of the colonial system in the late 1940s and 1950s, and the subsequent creation of independent states, that the revolution of rising expectations could start. Thus, the end of Second World War marked the beginning of a new regime for the less developed countries involving the evolution from symbiotic to inward-looking growth and from a dependent to a somewhat more independent relation vis-à-vis the ex-colonial powers.

It should not be inferred that the emphasis on investing in the urban modern sector in import-substituting production activities and physical infrastructure was undesirable from all standpoints. This process did help start industrial development and contributed to the growth of the modern sector. It may even, in some cases, have provided temporary relief to the balance-of-payments constraint. However, by discriminating against exports – actual and potential – the long-run effects of import substitution on the balance of payments may well turn out to have been negative.

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Advancing Development: Core Themes in Global Economics by G. Mavrotas, A. Shorrocks
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