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Underdevelopment economics

Table of contents:

Anonim

“The economic development policies promoted in Latin America in the last decades have not yielded the expected results. External bottlenecks, inflationary balances, agricultural backwardness, the existence of vast unemployed and marginalized social groups, and the tendency to stagnation are still present in most countries. In addition, new forms of dependency have recently emerged that seem to contribute to aggravating the aforementioned phenomena and configure discouraging prospects of increasing indebtedness and unemployment. ”

To characterize such a system, a critical examination of concepts of development and underdevelopment is made, concluding that development is not a "moment" or a "stage" in the evolution of an isolated and autonomous society, but rather part of the global historical process of development of capitalism. That is, development and underdevelopment are partial but interdependent structures that make up a single system, in which the developed structure is dominant and the underdeveloped is dependent.

The division of the world between a small group of countries that covers a small part of the world population, and where a high standard of living prevails, and most of the countries that cover the vast majority of the world population and where living conditions prevail very precarious, it is a relatively in the history of humanity.

Two centuries ago the world's population still lived, and for the most part, in material conditions of existence not characterized by different fundamentals among the various regions of the world. From the sixteenth century and the consequent boom in colonial trade, in certain regions of Europe an important process of capital accumulation was taking place.

In developed countries

“They live better and better as they have their food, education, health needs, as well as access to a wide variety of satisfiers. For their part, underdeveloped nations seek to reproduce the economic model, you named, trying to reach the level of rich countries such as Japan, the European Union and, above all, the United States, which, in addition to having economic power, has military power. ”

Underdevelopment is a process that makes sense for a part of the world population, that of the most developed countries, but that many others live in a continuous situation of economic underdevelopment.

The causes and characteristics of underdevelopment are not the same for all countries or for all the people who suffer from it, but it is, without a doubt, the most important aspect that the economy should address, which, we must not forget, tries to satisfy the needs human.

The problems of underdevelopment are still as demanding as in the past, move on to the technical and material progress that the persistent humanity of extreme underdevelopment has experienced, in much of the planet and the unjust inequality between rich countries poor. Which many developed countries still defend.

An extremely important challenge. If the Millennium Development Goals approved at the Millennium Summit in September 2000 were achieved in 2015, extreme poverty would be reduced by 500 million people, hunger would affect 300 million less people and child mortality would be reduced accordingly. so 30 million children would be saved instead of dying before their fifth birthday. In order to achieve these ends, it is essential, among other things, that developed countries increase and better coordinate official development aid, that those same countries improve access to their markets for exports from poor countries and eliminate subsidies that distort trade. international,that a new international financial architecture be created and that a truly effective program of external debt relief be launched, especially for heavily indebted poor countries.

Overcoming anachronistic approaches in this sub-discipline. To begin with, a global commitment is needed in the fight against underdevelopment and inequality, such as the one the United Nations has demanded for years. That commitment is perfectly possible. But you have to overcome selfish interests.

The underdevelopment of the economy

Like many complex phenomena of human society, underdevelopment has not yet been clearly defined. The UN classifies countries according to per capita income: least developed, underdeveloped, developing, and industrial developing countries. "

“Underdevelopment is related to the difference, in an increase, that separates the capitalist countries of Europe and Latin America from the note agricultural zones of the rest of the world. This gap began to widen and influence international relations after the Second World War. The developing economy, suggested in 1945 and 1960, is based on pressure from the pressing needs of certain newly independent states to reach the western world and access modernity. Demographic exploitation, typical of the 20th century and stagnation gave rise to contemporary underdevelopment.

Economists have gradually turned matter into an intellectual game by playing it for themselves and not because of its practical consequences, they gradually transformed discipline into a type of social mathematics that analytical rigor as understood in mathematics departments it is everything and in which empirical importance ”.

Criticism of an Autistic Economy

On the first question, the movement for a post-autistic economy started in France in June 2000 is extremely interesting when a group of public economics students issued a critical manifesto on conventional teaching in economic studies, in particular, the students put revealed three teaching flaws:

  1. The imaginative constitution of the world The abuse of mathematics The lack of pluralism

This movement was an autistic science, removed from the problems of time, in the first place the constitution of the imaginative world is the result of methodological individualism and the position of the rational behavior of the agents. As regards methodological individualism, it happens that, in conventional economic theory, economic action corresponds to isolated individuals, who have sufficient information about the costs and benefits of the different alternatives. In reality, individuals relate to each other and it is that relationship that provides them with the information they use when making decisions.

It is currently a dynamic communication space in which young social science researchers bring up both structural and current issues, and which aims to disseminate articles and documents that, being critical of the conventional view of economic theory, allow to establish the foundations of a new way of understanding and understanding the capitalist economic system and social life in general.

The crisis of dominant thought

It can be said that the current crisis in the discipline is also due to the flagrant inadequacy of conventional economic theory before the new realities, the most frequent element is based on the proven inadequacy of economic theory to realities and its inability to guide economic policy in the search for solutions to practical problems.

Some orthodox economists have not only rejected that orthodox economics have questionable flanks, but have even defended the relevance of the intrusion of conventional economic analysis into other disciplines.

"Economics is not just a social science, it is a genuine science, like the physical sciences, economics uses a methodology that generates refutable implications and tests those implications using sound statistical techniques."

The financial crisis in developed countries and its potential impact on the rest of the world became the exclusive topic of the annual meeting of the International Monetary Fund. No one is sure about what can happen, but paradoxically there are few differences that are observed when it comes time to formulate proposals to move forward. Most of the voices are waiting to meet the expectations of the financial markets with a package that includes fiscal consolidation and structural reforms, in different doses and presentations.

conclusion

The development goals have been adopted by the international community as a framework for development activities. Most of the countries that are around the industrialized economies cannot be considered as part of the independence process, because these countries were added to the international economy.

Awareness of underdevelopment is necessary for citizens to put pressure on the government of rich countries to change their policies, it is also necessary to become aware of the disadvantages that prevail in the development economy, in order to build a layered approach adequately interpret the problems of underdeveloped countries and propose effective strategies for their development.

Bibliography

  1. Pirenne, Heri. “Economic and social history of the middle ages, trans. From Salvador Echa Varria and Marti Soler-Vinyes México. 1952. pp. 183-184.Caldera Pietri, Mireya. "Introduction to the study of underdevelopment". Caracas Venezuela. 1984. Editorial Planeta Venezolana. P. 80-81.Velasco, R. (1996), The economists in their labyrinth, Taurus, Madrid. P. 48http: //www.economia48.com/spa/d/subdesarrollo/subdesarrollo.htm
Underdevelopment economics