A New Paradigm in Development Economics
According to Dani Rodrik there are three ways that most people conceptualize development economics:
1) One group believes the problem with developing countries is lack of resources. So the solution is a vast increase in foreign aid.
2) A second group believes the real problem if lack of incentives. So the solution is more and better markets.
3) The third group thinks the problem is lousy governments, so the answer lies with improved governance.
Rodrik claims to have always strayed from all three groups-- instead preferring to judge each case individually. He argues that increasingly this tendency to examine each case separately is an emerging paradigm in development economics. In this view we don't know the solution and it can only be determined in the context of each country.
Generalizations are hard to make when you are looking at a global scale. Rodrik's view argues that our knowledge is still very limited and there is still very much to learn. It makes sense to me that development tactics for Liberia will be different than Cambodia, and likewise different between Bhutan and Bolivia. Your thoughts?
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