The Misconceptions Of "Development Economics"
The Misconceptions of "Development Economics"
The main idea in this article is how much and what kind of government intervention should take place in developing countries. Some believe lassez-faire is the solution, while many believe a dirigiste dogma government is needed. There are also ways of reducing poverty and distributing assets in order for countries to become more developed.
Lassez-faire will only work efficiently if perfect competition is present. This is very unlikely to happen in today's economy, because of externalities in production and the inability to predict the future.
The main argument for dirigisme is based on a central authority directly controlling quantities of goods demanded and supplied. This authority must be benevolent, all-knowing and all-powerful in order to improve the market. This form of government also has its faults. There is no proof that the government will be more successful in foretelling the future than individuals. Outcomes......
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Approximate Word Count: 525
Approximate Pages: 3 (250 words per double-spaced page)
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