Author Profile

Barry Eichengreen is a professor of economics at U.C. Berkeley, a research associate of the National Bureau of Economic Research, a weblogger at the Washington Centre for Equitable Growth, and a fellow of the Institute for New Economic Thinking. He received his B.A. and Ph.D. from Harvard University in 1982 and 1987. He joined UC Berkeley as an associate professor in 1993 and became a full professor in 1997. Professor Barry also served as Deputy Assistant Secretary of the Treasury for Economic Policy. Barry has been editor and co-editor of the Journal of Economic Perspectives and a Fellow at the Centre for Advanced Study in the Behavioral Sciences, among other honors. Barry has published extensively in the areas of industrial organization, competition policy, patents, the economics of innovation, the design and use of patents, and competitive strategy.

About The Book

It is the wish of every community and every nation to move from one stage of development to another. Development is holistic approach that involves structural institutional changes and social economic transformation, in addition to increased outputs and incomes. Development also encompasses change in people’s customs and beliefs that are a hindrance to development programs. Economic growth involves urbanization, industrialization and increased and appropriate use of technology in all sectors of the economy. The government major role is to provide good welfare to its citizens. It is also obliged to facilitate economic players to actively participate in economic activity through provision of infrastructure. All this is done through the process of development theory, policy and planning. This work summarizes the theories of economic growth, both ancient and modern, and presents them in a form particularly suitable for university students, both in the developing world and elsewhere. The objective is to enable students to assess the major factors making for economic development and to encourage them to think about ways of applying their knowledge to the particular problems of their own countries. This book is written in a compact, coherent and comprehensive manner and enables the students to have a thorough grasp of the subject in simple and easy language as well as lucid style. A sincere effort has been made to make the subject-matter easier and clearer by giving different illustrations and drawing charts and diagrams mostly drawn from the Indian economy. Critical analysis has also been given at relevant places. From an overview of economic development theories this book delves into practical aspects of economic development planning, discussing resource utilization, infrastructure development, human capital investment, and sustainable development. The book also emphasizes the importance of balanced development, regional growth, and inclusive decision-making and promotes modeling approaches like the Theory of Change, Logical Framework, and Result-Based Management.

Table of Contents

Preface
1.
THEORIES OF ECONOMIC DEVELOPMENT.........................................1
1.1 Introduction
1.2 Goals Of Economic Development
1.3 The Evolution Of Economic Development Thoughts
1.4 Summary
2.
CHARACTERISTICS OF
AN UNDERDEVELOPED COUNTRY.....................................................15
2.1 Meaning Of The Term ‘Underdeveloped’
2.2 Different Criteria Of Underdevelopment
2.3 Characteristics Of An Underdeveloped Country
2.4 Agriculture, The Main Occupation
2.5 Unemployment And Disguised Unemployment
2.6 Lack Of Enterprise And Initiative
3.
OBSTACLES TO DEVELOPMENT...........................................................30
3.1 Introduction
3.2 Colonial Legacy
3.3 Socio-Cultural Heritage
3.4 Economic Structure
3.5 Sociopolitical Structure
3.6 The Political Context
3.7 Conceptions Of Time
4.
MODERN ECONOMIC GROWTH -
CONDITIONS & FACTORS OF DEVELOPMENT.................................47
4.1 Introduction
4.2 Economic Growth And Its Critical Notes
4.3 Growth Conditions And Factors
4.4 Endogenous And Exogenous Factors
4.5 Conclusion
5.
ADAM SMITH ON GROWTH AND
ECONOMIC DEVELOPMENT..................................................................63
5.1 Introduction
5.2 Adam Smith’s Theory Of Growth For A Given Technique Of Production
5.3 The Role Of Technical Progress In Smith’s Theory Of Growth
5.4 Some Key Insights Of Smith Into Explaining Economic Growth And Development
6.
THEORIES OF ECONOMIC GROWTH –
OLD AND NEW..........................................................................................74
6.I Introduction
6.2 Adam Smith On Growth
6.3 David Ricardo On Diminishing Returns
6.4 Linear Classical Models Of Production
6.5 A Typology Of Cases
6.6 Models Of Exogenous Growth
6.7 The ‘New’ Models Of Endogenous Growth
6.8 Conclusion
7.
CONTEMPORARY ECONOMIC GROWTH
MODELS AND THEORIES.......................................................................102
7.1 Introduction
7.2 Early Concepts Of Growth
7.3 The Classical Theory Of Economic Growth
7.4 Innovative Growth Theory Of Schumpeter
7.5 Keynesian And Post-Keynesian (Neo-Keynesian) Growth Theories
7.6 Neoclassical Growth Theories And The Exogenous Theory Of Robert Solow
7.7 Theory Of Endogenous Economic Growth
8.
DEVELOPMENT & GROWTH:
ECONOMIC IMPACT OF GLOBALIZATION......................................116
8.1 Introduction
8.2 Financial Globalization And Monetary Policy
8.3 New Monetary Policies And Interest Rate Corridors During The Post-Global Economic Crisis Period
8.4 Conclusion
9.
THEORIES OF DEVELOPMENT............................................................127
9.1 The Theory Of The Big Push
9.2 Critical Minimum Effort And Low Level Equilibrium Trap
9.3 The Theory Of Balanced Growth
9.4 The Strategy Of Unbalanced Growth
9.5 Theories Of Social And Technological Dualism
9.6 Lewis Model Of Economic Growth
9.7 Fei-Ranis Model Of Economic Growth
10.
DEVELOPMENT PLANNING.................................................................202
10.1 Market System — Functions And Shortcomings
10.2 State And Economic Development
10.3 Controls In A Planned Economy
10.4 Investment Criteria
10.5 Project Evaluation And Cost-Benefit Analysis
10.6 Shadow Prices
10.7 Input-Output Analysis
11.
ECONOMIC PLANNING .......................................................................284
11.1 Meaning Of Economic Planning
11.2 The Rationale For Planning
11.3 Planning Practice
11.4 Planning By Direction And Planning Through The Market
15.5 Financial And Physical Planning
11.6 Disenchantment With Planning
Bibliography...............................................................................................303
Index...........................................................................................................318