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Political Economy - PowerPoint PPT Presentation

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Political Economy. Liberalismo. Marxismo Dependency Theory Mercantilismo (o Statismo). Development thinking.

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Political Economy

  • Liberalismo
  • Marxismo Dependency Theory
  • Mercantilismo (o Statismo)

Development thinking

  • That progress in the poor countries will only be achieved through rapid, high tech industrialisation administered by central-planning board under the eagis of the state; after few years the benefits will “trikle down” to the poor;
  • Ditto, except that state control and central planning are inefficient and that private entrepreneurs must be given a free hand in the industrialisation process;
  • That wealth will not trickle down to the poor and that, therefore, dvelopment must be “bottom-up” in design rather than vice versa;
  • That main focus of development should be on meeting the “basic needs” of poor and vulnerable groups through the provision of primary health care, village-level education systems, food subsidies, etc.;
  • That it may, unfortunately, be necessary to neglect the basic needs of poor and vulnerable groups in order to achieve “structural adjustment” to a hostile international economic environment;
  • That it is possible to have “adjustment with human face” that achieves austerity goals but also builds in protections for poorest;
  • That it is impossible to have adjustment and growth at the same time;
  • That it is after all possible to have adjustment and growth at the same time.

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