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tangare [24]
3 years ago
9

Describe briefly and then cite some of the advantages and disadvantages of each of the following schools of thought concerning e

conomic development: linear stages, neoclassical. structural change, dependence, and neoclassical ?
Social Studies
1 answer:
Mice21 [21]3 years ago
7 0

Answer: see explanation

Explanation:

1) The linear stages of growth models share the central role of savings and capital formation as their basic theme. The two examples given are W.W. Rostow's theory and the Harrod-Domar model. This approach is limited since the structural and institutional conditions necessary to effectively utilize savings are often lacking, and the possibilities of development are often conditioned on international factors beyond a developing country's influence. In this respect, a distinction must be made between the necessary and sufficient conditions for economic growth.

1. The neocolonial dependence school emphasizes the unequal power relationships between the developed and less developed countries and blames underdevelopment on conscious or unconscious developed country exploitation, perpetuated by power inequality within each developing country, whereby a small ruling elite controls the means of production.

The false paradigm model argues that underdevelopment is fostered by well-meaning but inappropriate advice from aid agencies and other Western trained economists and/or advisors.

3. The dualistic development model, or Singer's superior-inferior sectors model which is cited as representative of the dualistic development thesis. Despite doubts that developed countries intentionally keep developing countries in a dependent state, there is recognition of the fact that many key international economic decisions are taken in developed countries.

4) The neoclassical counter revolution focuses on the working of markets, inefficiency, and a lack of economic incentives within developing countries as being responsible for the lack of development. In this respect, three approaches are highlighted:

1. The free market approach argues that markets are efficient and any government intervention is counterproductive.

2. The public choice, or new political economy, approach emphasizes inherent government failure and the self-interested behaviour of public officials.

3.The neoclassical counterrevolution has identified, and emphasized, three areas, namely, that:

(1) Price allocation is usually more efficient than intervention;

(2) State-owned enterprises have not fulfilled their promise and have been inefficient; and

(3) Incentives must be stressed

The neoclassical approach is criticized on the grounds that markets in developing countries, when they exist, are far from perfect and cannot be made perfect by any simple formula

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<u />

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