Developmental economics essay

Hirschman disagreed, arguing that a policy of promoting a few key sectors with strong linkages, then moving on to other sectors to correct the disequilibrium generated by these investments, and so on, was actually the right approach. Indeed, Hirschman structured his book as an argument with what he called the "balanced growth" school.

When a society is strong, indirectly a country will always be strong and stable whether economically, socially, or politically. Therefore, in the building of a strong country or civilization, the aspect of social development has to be emphasized. The concept of ‘social development’ is the result of phrase ‘welfare’ born earlier.

One is the strange history of development economics, or more specifically the linked set of ideas that I have elsewhere (Krugman 1993) called "high development theory".

Both key assumptions are clearly present: the assumption of economies of scale, embodied in the assertion that the factory must be established at such a large scale, and the assumption of dualism, embedded in the idea that these workers can be drawn from unemployment or low paying agricultural employment.