Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- Preface
- 1 Development, transition and divergence
- 2 The search for a fundamental and changeable cause of prosperity
- 3 Aspirations and social thought of modernisation
- 4 Development strategy, viability and performance
- 5 Viability and strategies of transition
- 6 Development strategy, development and transition performances: empirical analysis
- 7 Why are east Asian economies so special? Are there any general lessons to be learnt from east Asian development and transition experiences?
- 8 Towards a right development and transition strategy
- Appendix 1 Development strategy and economic institutions in developing countries
- Appendix 2 Data description
- References
- Index
8 - Towards a right development and transition strategy
Published online by Cambridge University Press: 05 June 2012
- Frontmatter
- Contents
- List of figures
- List of tables
- Preface
- 1 Development, transition and divergence
- 2 The search for a fundamental and changeable cause of prosperity
- 3 Aspirations and social thought of modernisation
- 4 Development strategy, viability and performance
- 5 Viability and strategies of transition
- 6 Development strategy, development and transition performances: empirical analysis
- 7 Why are east Asian economies so special? Are there any general lessons to be learnt from east Asian development and transition experiences?
- 8 Towards a right development and transition strategy
- Appendix 1 Development strategy and economic institutions in developing countries
- Appendix 2 Data description
- References
- Index
Summary
Freedom of the will … means nothing but the capacity to make decisions with knowledge of the subject.
Friedrich Engels (1877)So far, what I have argued is as follows.
• Continuous technological upgrading is the most important driving force for a country's long-term dynamic growth in modern times. By tapping into the advantage of backwardness, a developing country has the opportunity to upgrade technology rapidly and to catch up and converge with developed countries' per capita income levels.
• Ideas are the most vital determinants of whether a developing country will be able to achieve long-term dynamic growth. With the guidance of right ideas, a developing country will be able to exploit the advantage of backwardness, achieve dynamic growth and converge with developed countries. Historical evidence shows, however, that the ideas reflected in the prevailing social thought about how a developing country should develop its economy are not correct because the ideas mistakenly took the result of development – that is, possessing advanced industries in a country – as the cause of development in a country.
• The government is the most important institution in a developing country. The policies pursued by the government will shape the quality of other institutions and the incentive structure in the economy. Political leaders run the government. Therefore, it is necessary to understand their motivations and behaviour in order to understand the country's policies.
- Type
- Chapter
- Information
- Economic Development and TransitionThought, Strategy, and Viability, pp. 92 - 96Publisher: Cambridge University PressPrint publication year: 2009