The Economic Theory of Growth and Development

The Economic Theory of Growth and Development

The Economic Theory of Growth and Development

The Economic Theory of Growth and Development


This unique work treats economic growth and development in terms of a theory which is applicable to an economy in the post-industrial, developing, and emerging stages. The author uses the theory to analyze and study the growth of an economy through these three stages of development within the framework of the business cycle in disequilibrium. This work has taken on special importance in light of the changing world situation, including the changes in the former Soviet Union, the peace process in the Middle East, and renewed concern for developing and emerging countries.


If we ask why a people has made a certain choice, the answer lies usually in history; but if we ask why it has had that particular history, we are back among the mysteries of the universe. Fortunately, not all the answers depend on history. It is possible for a nation to take a new turn if it is fortunate enough to have the right leadership at the right time. In the last analysis history is only the record of how individuals respond to the challenge of their times. All nations have opportunities which they may grasp if only they can summon the courage and the will.

W. Arthur Lewis,

Theory of Economic Growth

The events of our recent history -- the overthrowing of dictatorships in Eastern Europe, the dissolution of the Soviet empire, the reunification of Germany, the finalization of the European Common Market, and the beginning of the first real peace talks involving the combatants in the troubled Middle East -- are certainly of the greatest historical significance. They pose problems and opportunities unique to our historical era.

In previous historical eras situations of such importance usually required that great leaders come to the fore to provide viable solutions for their peoples. The Congress of Vienna of 1815, which brought about relative peace in Europe for a hundred years, resulted in the Industrial Revolution taking hold on the Continent and provided sufficient stability for industry to develop and for each country to establish its own working patterns in industry according to its national characteristics. Competition in trade regulated quality in production, and internal competition provided the basis for new products to be developed to capture both the domestic and foreign markets. This stability ended with the military posturing that resulted in World War I.

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