By Jan P. Pronk
This quantity offers a state of the art debate at the arguable subject of improvement aid.
- The members are all specialists within the box of foreign development.
- Presents a few hard conclusions concerning the function that relief performs in catalysing, or stifling, development.
- Represents quite a lot of assorted analytical perspectives.
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Extra resources for Catalysing Development: A Debate on Aid (Development and Change Special Issues)
Arthur (1954) ‘Economic Development with Unlimited Supplies of Labour’, The Manchester School of Economic and Social Studies (May). Lewis, W. Arthur (1955) Theory of Economic Growth. London: Allen and Unwin. M. D. and J. A. Mirrlees (1968) Manual of Industrial Project Analysis. Paris: OECD Development Centre. Little, I. M. D. and J. A. Mirrlees (1974) Project Appraisal and Planning for Developing Countries. London: Heinemann. Little, I. M. , T. Scitovski and M. F. G. Scott (1970) Industry and Trade in some Developing Countries.
There must be an ethic to promote efficiency; honesty is good for business. The seventh secret is that if a country wants to move ahead, it must get its initial conditions right: for example, liberalization of trade and capital flows should not come at too early a stage; the institutions must be in place (banking, property rights) before policies can have their effect. Moving from one extreme to the other, policy-wise, must be avoided. Extreme ideologies are neither required nor desirable. On the continuum between extremes (export promotion versus import substitution, state versus market, growth versus income distribution), each country must decide where it should situate itself at any given point in time and, even more importantly, get its timing right for the move on the continuum towards one direction or the other, without going too far.
As early as 1943 he argued that investment decisions are interdependent and that — at early stages of development — investment projects are often too risky for individual investors. He came out in favour of the ‘big push’ development strategy, involving government planning to co-ordinate 30 Louis Emmerij and provide incentives for simultaneous investment in several complementary industries that would increase both production and the size of the domestic market (Rosenstein-Rodan, 1943). The solution Nurkse proposed was related, namely a synchronized and simultaneous application of capital throughout industry in order to bring about a generalized expansion of the market (Nurkse, 1952).
Catalysing Development: A Debate on Aid (Development and Change Special Issues) by Jan P. Pronk