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  • The U.S., Canada and Australia faced very favorable initial conditions in 18th and 19th century. There was an abundance of land, fairly temperate climates, and good endowments of natural resources. But the initial conditions facing most (not all) poor countries were much less favorable and many had to cope with the damages left by centuries of colonialism, in Africa and Latin America. In the great majority of cases, colonialism was especially damaging to institutions, to soils, to system of governance etc.

So, it is evident that “one size never fits all” , even as between poorer countries as a group, there are just too many differences in initial conditions and subsequent conditions. However, early 20 th century models of economic growth were based on the idea that one size fits all

Let us also consider generalizations about development. The first important generalization. It is very difficult to make defensible generalization about economic development. We are, after all, talking about 160/170 odd nations that are conventionally called emerging, or less developed and 40 countries that are called nearly developed .

In fact, there are as many differences between individual developing countries as there are differences between developing countries and developed ones. This is not surprising given vast difference between developing countries. These include differences in:

  • Cultures
  • Natural resource endowment
  • Climate ( 500 years ago tropical regions were richer then in Northern climates)
  • Colonial Past ( Much of sub-Sahara Africa’s lower per capita GDP stem from its colonial heritage )
  • Ideological Differences
  • Leadership Differences

Growth models- old and new

Let us examine some 20th century models in Growth and Development. Not 30 years ago most courses on economic and development spent at least a month focused on models purporting to capture the essence of growth and development.

In this book we will spend only a few hours on them, mostly as a place-marker in the history of economic thought.

First was the Harrod-Domar Model a widely taught (circa 1950-55) model (see Chapter 4, textbook). Harrod-Domar This model was developed by Roy Harrod and Evsey Domar in the 1950s. The model is single-mindedly focused on investment in physical capital (the concept of human capital was not formal until the sixties). was concerned exclusively with rule of Physical capital accumulation in economic growth. This is an extremely simple model, formulated by desk-bound professors and taught by desk-bound professors to other desk-bound economists.

This model led to shallow thinking and more importantly, to some misapplied policies. The author remembers clearly the Vice President of the World Bank, Hollis Chenery, in 1975 lecturing to the Indonesian Ministers of Finance and Planning on the singular importance of Physical capital accumulation.

As one result of the dominance of this approach, there was a widespread tendency to think of the structure of the Harrod-Domar model as a reflection of the real world. Many then viewed parameters of Harrod-Domar as actually pertaining to world experience. A list of disastrous policies by aid donors and recipient governments attributed to thinking fostered by misuse of variants of the Harrod-Domar model, presented below: A more detailed presentation of the Harrod-Domar model may be found in Dwight Perkins, Stephen Radelet and David Lindauer , Economics of Development, (6th edition 2006, Chapter 11).

Questions & Answers

How we are making nano material?
what is a peer
What is meant by 'nano scale'?
What is STMs full form?
scanning tunneling microscope
what is Nano technology ?
Bob Reply
write examples of Nano molecule?
The nanotechnology is as new science, to scale nanometric
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
what school?
biomolecules are e building blocks of every organics and inorganic materials.
anyone know any internet site where one can find nanotechnology papers?
Damian Reply
sciencedirect big data base
Introduction about quantum dots in nanotechnology
Praveena Reply
what does nano mean?
Anassong Reply
nano basically means 10^(-9). nanometer is a unit to measure length.
do you think it's worthwhile in the long term to study the effects and possibilities of nanotechnology on viral treatment?
Damian Reply
absolutely yes
how to know photocatalytic properties of tio2 nanoparticles...what to do now
Akash Reply
it is a goid question and i want to know the answer as well
characteristics of micro business
for teaching engĺish at school how nano technology help us
How can I make nanorobot?
Do somebody tell me a best nano engineering book for beginners?
s. Reply
there is no specific books for beginners but there is book called principle of nanotechnology
how can I make nanorobot?
what is fullerene does it is used to make bukky balls
Devang Reply
are you nano engineer ?
fullerene is a bucky ball aka Carbon 60 molecule. It was name by the architect Fuller. He design the geodesic dome. it resembles a soccer ball.
what is the actual application of fullerenes nowadays?
That is a great question Damian. best way to answer that question is to Google it. there are hundreds of applications for buck minister fullerenes, from medical to aerospace. you can also find plenty of research papers that will give you great detail on the potential applications of fullerenes.
what is the Synthesis, properties,and applications of carbon nano chemistry
Abhijith Reply
Mostly, they use nano carbon for electronics and for materials to be strengthened.
is Bucky paper clear?
carbon nanotubes has various application in fuel cells membrane, current research on cancer drug,and in electronics MEMS and NEMS etc
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Source:  OpenStax, Economic development for the 21st century. OpenStax CNX. Jun 05, 2015 Download for free at http://legacy.cnx.org/content/col11747/1.12
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