Sunday, October 24, 2010

The mystery of economic growth

New York Times is as complicated as the rest of us.

Development is an unpredictable business. …One of the central issues facing India - and, indeed, whole - developing countries is why certain people or certain countries move forward while others dragged.

For all its temptations, however, the search for a development policy toolkit is full of pièges.Au over the past 60 years, the international development community found with the model after model theory theory, to such a box tools.

There at various times, promoted the benefits of huge, often conditional, foreign aid, the rigours of the shock therapy, inputs the virtues of free trade and the promise of the Washington consensus (a set of policies prescribed and often imposed by agencies such as the World Bank, the IMF and the US Treasury).?

Author, Akash Kapur has superb taste, economists and publications:

Yet, for all efforts to reach a general theory of development, the truth is that economic growth remains something of a mystery .c ' is the conclusion of a recent anthology, "What Works development?", published by the Brookings Institution.Les tests lead to the conclusion that there is no clear way to alleviate poverty, and - as publishers, William Easterly and Jessica Cohen, State in their introduction-"no consensus on"what works"for growth and development".

M. Easterly, a former economist at the World Bank, also showed a little correspondence between the economic growth of the country and to the extent that it follows orders of international development.Analysis of data from 1980 to 2002, he found that countries that grow rapidly received much less foreign aid and spend less time under supervision of the s.a.m. production order as those which grew slower than I.This is not to say that on the night development orthodoxy, but it suggests that rapid growth is possible without international assistance or advice.

Unfortunately, this could create the season to ignore Econ 101 (oops!):

Robert Zoellick of b., President of the World Bank... spoke of the need for economic development "redefine" and "a questioning prevailing paradigms."

The rise of South-East Asia (and more recently represented China… repudiation of manuals of views on the role of Government and the relation between market and State.)

Also, the recent growth of the India can be seen because of a desire to follow her own path....{in the} breaking the conventional model.

It won't be easy to conclude after all this, but article has valiantly found a positive note:

The account is... ability to meet the needs of context and local detail, what works best in the développement.Le type of grinding, sweat work involves - time field in the villages and farms, to learn about cultures and social structures - is certainly less prestigious than overall design theories to rid the world of poverty.

But poverty is a little glorieux.Seulement, it is appropriate that the most effective to remedy through small, discreet and often painful interventions.

Okay, as long as we also recognize the tremendous achievements of another grinding, sweat, grueling, contextual group - private entrepreneurs poverty reduction.

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