Development Economics

By the end of 20th century, many thought that development economics were successful in settling theoretically, some major issues of development. They roughly listed the following issue; what were the sources of growth? Does macroeconomic stability matters and how can it be sustained? Should developing economy liberalize trade? How crucial are property rights? Is poverty reduction a function of growth and asset accumulation, or is poverty safety nets required? Can developing countries defers or down play employment problems? How closely should the state manage and regulate development.

Phase IV: 2001- onward

Major Researches:

Recent researches have unfolded a huge rang of complex issues taking practically all major and minor problems with which especially LDC’s are passing through from the late 20th century. Here we point out a few of them. Bardhan analysed the kind of institutions and incentives structure that create distributive conflicts and collective actions problems mainly due to dysfunctional institution in poor countries and showed a more complex and nuanced role of the state to deal with the need for coordination. He has also focused on how the effects of the distributive conflicts flows through among different social groups having asymmetries in their bargaining power and creating impediments in generating good economic outcomes in LDC’s.

There is a prolong debate going on over decades to find out the relations if at all with history and economic development of a country. It is now argued that both institutional and technological changes are endogenously determined by long run economic history by solving agency and appropriative problem.

Another very practical issue has been focused recently with much emphasis in the actual nature of intersection between economic policy advice and politics in practice in implementing them. The issue is patterned to seek answers to from political economy perspective why and when are politicians interested in...