Economic Development in Perspective
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'Economic Development' is a short collection of speeches given by John Kenneth Galbraith in India in 1961. Galbraith was an economist, diplomat and public intellectual throughout the post-war period. The speeches in the text were delivered during his time as the American Ambassador to India under JFK. Galbraith is witty and engaging and the speeches reveal a snapshot of the general thinking in the field of economic development in the post-war decades. However, as is expected given its age, moder 'Economic Development' is a short collection of speeches given by John Kenneth Galbraith in India in 1961. Galbraith was an economist, diplomat and public intellectual throughout the post-war period. The speeches in the text were delivered during his time as the American Ambassador to India under JFK. Galbraith is witty and engaging and the speeches reveal a snapshot of the general thinking in the field of economic development in the post-war decades. However, as is expected given its age, modern concepts such as the critical role of institutions in a nation's successful development are absent. The speeches reveal Galbraith's clever wit - most of the sections open with a dry remark (eg: "The world's religions are, on the whole, unspecific on the nature of the economic system in the hereafter.") Also evident is his tendency to try and simplify economic concepts for what might be a lay audience (eg: "In less stately language, there aren't enough places where people can do anything useful"). His combination of charming wit and clarity of expression goes far to explain his prominent role in public life over many decades. His position as a communicator of economic ideas was perhaps only rivalled by Milton Friedman at the time, and is a post unfilled in the current generation. The speeches are about economic development in poor countries. It is interesting to observe the trends in the speeches which reflect their time. A speech entitled 'The Choice', sets out the choice developing countries face between a western economy and a Marxian economy. In the last chapter Galbraith urges action on population control, urging the reader that action should not be delayed "by wishful talk of an inexpensive pill or like miracle." Galbraith talks of his personal experience in 'post-war' planning. Most interestingly for me, as a (very) amateur student of development economics, was the complete absence of any mention of the importance of 'institutions' or 'politics' as key drivers in the success of a nation's development. My understanding is that the institutional theory in development economics, now an important concept in the field, was not formalised until several decades later (eg. North, Acemoglu). Galbraith mentions the importance of effective government, social order and education - all types of institutions - but doesn't have at his disposal the theoretical framework to explain them in that language. This is not a criticism of Galbraith, but rather serves as a reminder that although it is an insightful read for an economic historian, the proposals set forth are incomplete, of their time and don't include important modern theories.
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