Development Economics: From Classical to Critical Analysis

The definition of development has changed over the years since the inception of development economics as a sub-discipline of economics in the 1950s. Initially, development economics was understood as a study of how the economies of nation-states have grown and expanded, placing the discipline in line with the classical and neoclassical traditions of economics. Later, however, some scholars focused on how to improve the welfare of the population and the planet informing the critical tradition. The post-war economic development models were fundamentally classical, but they did allow for some state intervention to achieve development, demonstrating the influence of economist John Maynard Keynes. Postwar leftist development economics coalesced around structuralism and dependency theory, or world systems theory, the latter two having their roots in Marxist political economy. This influenced state-led development approaches most associated with the Asian Tigers. In the 1980s, neoliberal ideas came to dominate development economics, however the high social costs of this approach led to a greater focus on poverty, while more progressive scholars emphasized capabilities and redistribution with growth. Since the Global Financial Crisis, questioning of neoclassical economics has grown and, while it is still far from dead, more heterodox approaches are flourishing.

The challenges of inclusive growth for the developmental welfare state

Reframing Global Social Policy ◽

10.1332/policypress/9781447332497.003.0005 ◽

2017 ◽

Author(s):

Huck-ju Kwon

Keyword(s):

Social Policy ◽

Financial Crisis ◽

Economic Model ◽

Global Financial Crisis ◽

Policy Implications ◽

What Works ◽

Nation States ◽

The Social ◽

The One ◽

One of the biggest challenges for developing a new more productivist social policy approach has been the apparent absence of a new, post-neoliberal, economic model even after the global financial crisis. This chapter explores the social policy implications of the official ‘pragmatism’ of the new economic model with its ‘institutionalist’ emphases on nation states finding what works best in their own contexts rather than looking to the one size fits all approach of recent decades.

Globalization should be what states make of it

10.26686/wgtn.17013821.v1 ◽

2021 ◽

Author(s):

◽

Régis Le Moguédec

Keyword(s):

Global Economy ◽

Political Action ◽

Global Financial Crisis ◽

International System ◽

State Intervention ◽

Global Market ◽

Financial Deregulation ◽

The Great Depression ◽

Public Money ◽

<p>A significant factor that prevented the Global Financial Crisis (GFC) from becoming as calamitous as the Great Depression of 1929, is the fact that states reacted swiftly to inject massive sums of public money to save the banks and the global financial system. This massive state intervention highlighted the limits of the progressive deregulation of the international system which characterized the process of globalization. It showed that states had huge responsibilities in keeping the global economy afloat, albeit without a clear compass or direction. The apparent ‘anarchy’ of the global market system makes conceivable that, to paraphrase A. Wendt, “globalization should be what states make of it”. Limiting the scope of study to the postmodern state, and looking at the discourse surrounding the globalization process that promotes de-regulation and limited government within a ‘neo-liberal paradigm’ it looks at the ‘democratic deficit’ which weakens the political decision-making process. If not yet a ‘paradigm shift’, the GFC has many ingredients of a crisis of capitalism which needs to re-invent itself, and political action is crucial to curb the excesses of finance. Looking at France, and the election of Francois Hollande on a strong ‘anti-finance’ platform in 2012 and its European Union dimension, it remains to be seen if that kind of shift will actually be able to operate and be successful to set the tone for global reforms. In conclusion, the core argument is that the global ‘trial’ of the neoliberal paradigm and the concept of financial deregulation should now enter a new phase. It is historically and symbolically the defeat of the self-regulating markets as a blueprint for global prosperity. The present structures are inadequate, and states have to find new ways for cooperation in order to steer this integrated world towards greater cohesion.</p>

China, Global Governance and the Future of Cuba

Journal of Current Chinese Affairs ◽

10.1177/186810261204100106 ◽

2012 ◽

Vol 41 (1) ◽

pp. 155-179 ◽

Cited By ~ 5

Author(s):

Adrian H. Hearn

Keyword(s):

Latin America ◽

Global Financial Crisis ◽

State Intervention ◽

Communist Country ◽

Economic Governance ◽

Multilateral Institutions ◽

Recent Developments ◽

The Caribbean ◽

International Conventions

China's deepening engagement with Latin America has been accompanied by concerns about the Chinese government's regard for international conventions of economic governance. Critics claim that across Latin America and the Caribbean, Chinese aid and trade are characterised by excessive state intervention. This article argues that, for two reasons, the rationale for these misgivings is dissipating. First, since the onset of the global financial crisis, China has gained influence in multilateral institutions, prompting them toward greater acceptance of public spending in developing countries. Second, recent developments in Cuba show that China is actively encouraging the Western hemisphere's only communist country to liberalise its economy. China sits at the crossroads of these local and global developments, prompting Cuba toward rapprochement with international norms even as it works to reform them.

Financial Stability as an Indicator of the Effectiveness of Managing Changes in All Spheres of the National Financial and Economic System

Social Economics ◽

10.26565/2524-2547-2018-56-5 ◽

2018 ◽

Keyword(s):

Change Management ◽

Economic System ◽

Financial Stability ◽

Global Financial Crisis ◽

Effective Change ◽

Adequate Understanding ◽

Economic State ◽

Optimal Values ◽

Definition Of ◽

The article is devoted to the consideration of the problem of ensuring and maintaining financial stability as an indicator of the effectiveness of change management in all areas of the national financial and economic system. The study presents approaches to the definition of financial stability, the factors on which it depends, the processes that are affected and characterized by financial stability. The crisis phenomena of the national financial and economic sphere, which were triggered by the global financial crisis of 2008–2009, are considered and its consequences, factors that have broke financial stability in Ukraine and their effects for the economy. The relevant aspects of maintaining global financial stability and the factors that influence this are highlighted. The current financial and economic state of Ukraine is considered in the light of progressive adaptation and integration changes in all spheres of the national financial and economic system, which ensures financial stability. The importance of effective change management in all areas of the national financial and economic system is outlined to ensure and maintain financial stability. Based on the results of the study, it was established that modern adequate understanding and acceptance of the problem of ensuring and maintaining financial stability as an indicator of the effectiveness of change management in all areas of the national financial and economic system is impossible without uniting interests and involvement in the processes of positive changes of all subjects financial and economic system – the state, the real sector of the economy, households and financial market. Prospects for further research is to determine the optimal values of indicators in all areas of the national financial and economic system, which provide financial stability, and therefore are the information and analytical basis for the development and implementation of effective solutions at all management levels.

ОСОБЛИВОСТІ ТОРГОВОГО БАЛАНСУ НІМЕЧЧИНИ В УМОВАХ КРИЗОВОГО І ПОСТКРИЗОВОГО РОЗВИТКУ СВІТОВОЇ ЕКОНОМІКИ

TIME DESCRIPTION OF ECONOMIC REFORMS ◽

10.32620/cher.2019.1.02 ◽

2019 ◽

pp. 13-19

Author(s):

А. В. Артьомова

Keyword(s):

Global Financial Crisis ◽

The State ◽

Balance Of Payments ◽

Practical Significance ◽

Structural Elements ◽

Economic Relations ◽

Scientific World ◽

Definition Of ◽

The Impact

Formulation of the problem. Taking into account the tendencies of globalization of financial markets and economic relations as a whole, as well as the causes and consequences of the global financial crisis, the study of balance of payments balances become more and more relevant. The purpose of the research is to justify the theoretical basis of the formation of the balance of payments; studying the concepts and models of regulation of the balance of payments of the state; definition of structural elements and clarification of the macroeconomic value of the balance of payments; substantiation of directions of balancing the balance of international settlements; studying the impact of macroeconomic policy on the country's balance of payments; the formation of a strategy for reducing the deficit of the balance of payments. The object of research is the model of regulation of the balance of payments of the state. The methodological basis of the study was the methods and principles of the scientific knowledge of general and special methods and techniques used in the regulation and definition of the structural elements of the balance of payments. The hypothesis of the research is the assumption that for Germany's prosperity, analyzing the structure of GDP by industries over the past ten years, in the future it is necessary to focus on the development of those industries in which employment slightly decreased over the analyzed period. The statement of basic materials. The article deals with the origin of the concept of "balance of payments" in its modern sense. We studied countries that were forced to publish the balance of payments due to the emergence of inflationary processes. The trade balance of Germany in the conditions of crisis and post-crisis development of the world economy is investigated. The originality and practical significance of the research. It should be noted that in the scientific world there is a discussion on determining the main factors and the nature of their impact on the balance of payments of the country, as well as the causes of deficits in the balance of payments. Conclusions of the research . In this paper, approaches to a comprehensive assessment of the equilibrium of the balance of payments of the states are proposed on the basis of comparative analysis of the three groups of indicators. According to the results of the approbation of this approach, the balance of payment balances of the world's largest economies was assessed.

Bailing out the Wealthy: Responses to the Financial Crisis, Ponzi Neoliberalism, and the City

Human Geography ◽

10.1177/194277861000300303 ◽

2010 ◽

Vol 3 (3) ◽

pp. 54-84 ◽

Cited By ~ 20

Author(s):

Alan Walks

Keyword(s):

Public Policy ◽

Financial Crisis ◽

Global Financial Crisis ◽

Financial Economic ◽

Nation States ◽

The Future ◽

Developed World ◽

The Impact ◽

The City

This article seeks to critically examine public policy response to the global financial crisis in the core of the developed world, and to understand the likely implications of this set of policy responses for the future trajectory of urban social crises. Instead of dealing with the internal contradictions of the financial-economic system that characterizes recent capitalism, and that produced the global financial crisis, the governments of the wealthiest countries are actively attempting to ‘solve’ the problem by re-installing a form of capitalism that I refer to as ‘ponzi neoliberalism’. The increasing dominance of ponzi dynamics in this system means it is inherently contradictory, inequitable, wealth-destroying in the aggregate, and unsustainable – I stress in particular the implications for the future form and trajectory of urban social inequality. In this article, I trace the roots of the global financial crisis and outline the parameters of ponzi neoliberalism. I then discuss how nation states are using public policy to resuscitate this system, and in doing so, are reproducing highly contradictory and unsustainable, but self-reinforcing, dynamics (doom-looping) that imperil future social and economic sustainability. I then consider the impact on the geography of the city, and argue that this strategy risks deepening urban social crisis. The longer that ponzi neoliberalism is allowed to continue, the deeper and more problematic will be the crisis, and the more limited will be the state capacity to respond to its contradictions.

Book Reviews

Journal of Economic Literature ◽

10.1257/jel.50.4.1106.r4 ◽

2012 ◽

Vol 50 (4) ◽

pp. 1115-1117

Keyword(s):

Financial Crisis ◽

Development Economics ◽

International Economics ◽

Global Financial Crisis ◽

Williams College ◽

Brown University ◽

Eminent Scholar ◽

Financial Regulatory

Edwin M. Truman of Peterson Institute for International Economics reviews, “Guardians of Finance: Making Regulators Work for Us” by James R. Barth, Gerard Caprio Jr. and Ross Levine. The EconLit Abstract of this book begins: “Explores the role played by the major financial regulatory institutions in aiding and abetting the global financial crisis. Discusses whether regulating finance is hard to do; incentives running amok; how U.S. regulators encouraged the financial crisis; whether an American crisis is necessarily so; having been down this road many times before; more of the same-post-2007-09 financial crisis regulation; and making the guardians of finance work for us. Barth is Lowder Eminent Scholar in Finance at Auburn University and Senior Finance Fellow at the Milken Institute. Caprio is William Brough Professor of Economics at Williams College and Chair of the Center for Development Economics. Levine is James and Merryl Tisch Professor of Economics at Brown University and Director of the William R. Rhodes Center for International Economics and Finance. Glossary; index.”

Bank regulation and risk in Europe and Central Asia since the global financial crisis

Risk Governance and Control Financial Markets & Institutions ◽

10.22495/rgcv10i1p6 ◽

2020 ◽

Vol 10 (1) ◽

pp. 75-93

Author(s):

Deniz Anginer ◽

Asli Demirgüç-Kunt ◽

Davide Salvatore Mare

Keyword(s):

Financial Crisis ◽

Central Asia ◽

Financial Stability ◽

Global Financial Crisis ◽

Bank Risk ◽

Bank Capital ◽

Regulatory Capital ◽

Capital Ratios ◽

Definition Of ◽

This paper examines changes in bank capital and capital regulations since the global financial crisis, in the Europe and Central Asia region. It shows that banks in Europe and Central Asia are better capitalized, as measured by regulatory capital ratios, than they were prior to the crisis. However, the increase in simple equity ratios for the same banks has been smaller over the past 10 years. The increases in regulatory capital ratios have coincided with a reduction in the stringency of the definition of Tier 1 capital and reduction in risk-weights. We further analyze the relationship between bank capital and bank risk using individual bank data. We show that bank risk in Europe and Central Asia is more sensitive to changes in simple leverage ratios than changes in regulatory capital ratios, consistent with the notion that equity ratios only include high-quality capital and do not rely on internal risk models to compute risk-weights. Although there has been some effort to increase capital and liquidity requirements for institutions deemed systemically important, the region has been lagging in addressing the resolution of these institutions. In line with Demirguc-Kunt, Detragiache, and Merrouche (2013), our findings show the importance of the definition of bank capital to assure bank financial stability in Europe and Central Asia.

Olgierd Górka’s Polemics on the Contours of the Polish Nation (1933- 1955)

Connexe : les espaces postcommunistes en question(s) ◽

10.5077/journals/connexe.2018.e160 ◽

2020 ◽

Vol 4 ◽

pp. 25-36

Author(s):

Estelle Bunout

Keyword(s):

The Political ◽

Political Debate ◽

The Public ◽

Nation States ◽

The People ◽

South Eastern Europe ◽

The Public Sphere ◽

Post War ◽

Definition Of ◽

The Voice

Olgierd Górka was a historian specialized in Eastern and South-Eastern Europe who took actively part in the political debate concerning the place of minorities in Poland. He occupied different roles in the public sphere and appeared to have insistently tried to embody the voice of politically marginalised citizens of Poland. Olgierd Górka argued for a strong link between the Polish state and its citizens as a precondition for their mutual survival. His life exemplifies the discussion around the definition of the people, at the heart of the legitimation of modern nation-states in Central Europe during the 20th century. The debate initiated by Olgierd Górka helps to better understand how the modern Polish state, born from the ashes of three empires, defined Polish citizenship and how it evolved during the upheavals of the interwar and the post-war period.

ANTI-CRISIS STATE INTERVENTION AND CREATED IN MEDIA IMAGES OF GLOBAL FINANCIAL CRISIS

International Journal of New Economics and Social Sciences ◽

10.5604/01.3001.0012.9941 ◽

2018 ◽

Vol 8 (2) ◽

pp. 177-179

Author(s):

Dariusz Prokopowicz

Keyword(s):

Monetary Policy ◽

Financial Crisis ◽

Federal Reserve ◽

Commercial Banks ◽

Global Financial Crisis ◽

Financial System ◽

State Intervention ◽

Federal Reserve Bank ◽

Reserve Bank ◽

The global financial crisis in 2008 was the reason for increasing the scale of interventionist economic policies in developed countries. The main instrument of this policy was the significant development of a mild monetary policy and interventionist measures aimed at forcing the restructuring processes of heavily indebted enterprises and stopping the decline in lending by commercial banks. As part of the pro-development activities of the state intervention, the Federal Reserve Bank applied a mild monetary policy of low interest rates and a program for activating lending and maintaining liquidity in the financial system by financing the purchase from commercial banks of the most endangered assets. A few years later, the European Central Bank applied the same activities of activation monetary policy. The functioning of the financial system will not be fully corrected as long as there will be a message in the media encouraging the banks that the global financial crisis is primarily attributable to the Federal Reserve Bank in the USA. In many para-documentary films, which, as a para-scientific explanation and education of citizens, promote the philosophy of combining deregulation of financial markets with the development of a free market, and attempts to regulate markets are trying to implement the principles of real socialism, a system quite different from that considered an ultramarine US economy.