Is the prescription of escaping the viscous cycle in underdeveloped countries due to low incomes advancing to low-equilibrium trap in the economy still worth considering in the 21st century of Africa? The principle of supply law creating its own demand by classical economist Jean-Baptiste Say’s still worth the experiment in the African economies?
Siyanda Zwane I think what is needed is an enhancement to the global economic system which favours the less developed countries. The idea is to provide funding at a level of X dollars per person per day going to all the compliant national governments to spend on economic development projects.
Preprint Global Economic System (March 2022)
I think this would be of great benefit to countries in Africa.
Richard
The Big Push theory was criticized by such as Hla Myint and Celso Furtado as soon as Rosenstein-Rodan formulated it: the theory seems rather dated in the volatile, uncertain, complex, and ambiguous world of the 21st century. Major criticism at the time of the Big Push theory’s formulation had to do with over-simplification of the experience of high-income countries over the preceding two centuries; difficulties of execution in mixed (as opposed to command) economies; low (absorptive) capacity in low-income countries; shortage of resources in the said countries; insufficient attention to methods of production and corresponding over-emphasis on capital formation; downplay of the role of the agricultural sector and corresponding over-emphasis on industrialization; inflationary pressures on the economy from neglect of agriculture; and heavy dependence on indivisibilities.