catallaxy files

catallaxy in technical exile

Deepak Lal on development economics

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There is a 250 page book by Lal on line at the Institute of Economics.

In this revised and expanded version of a classic IEA text, first published in 1983, but revised and expanded in 1997, Professor Lal provides a robust critique of the statist model of development which denigrates both trade and open markets. He concludes that the demise of this dogma would be beneficial to the health of both the economics and the economies of developing countries.

Also on line is the plan for a book on poverty in the Third World.

An extract from the plan.

Finally, the book will outline the reasons why numerous aid agencies including the World Bank and non-governmental organizations (NGOs) are still promoting the false impression (given the evidence) that despite the substantial economic growth that has taken place in the Third World since the 1980’s there has been no reduction in Third World poverty. Hence what is needed is even more foreign aid. It will be argued that ‘third world poverty’ has now become an industry by which many middle class professionals make a living. It will be shown that foreign aid has not succeeded in its aims of alleviating poverty. By providing predatory governments the means to maintain their dirigiste policies that damage the economic prospects of the poor, and with the dismal failure of ‘conditional’ aid in changing state behaviour, aid is no longer merely a palliative but harmful. It is time the whole ‘poverty’ enterprise is shut down by pensioning off the Lords of Poverty. The reluctant globalizers may then decide to integrate with the world economy which can – as the example of numerous countries in the Third World, amongst whom India and China are notable- lead to rapid intensive growth and the elimination of mass structural poverty within the life time of a generation.

Using historical data and evidence from around the third World, the book will thus deal with a number of continuing myths concerning world poverty. These include:
1. Globalization has increased rather than reduced world poverty
2. The West grew rich at the expense of the Rest
3. Economic growth does not ‘trickle down’ so direct measures like the Western welfare state are needed to tackle world poverty.
4. Without massive foreign aid the problems of the world’s poor will not be solved.

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Written by Admin

July 7, 2006 at 12:02 am

Posted in Uncategorized

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