HANDBOOK OF ALTERNATIVE THEORIES OF ECONOMIC DEVELOPMENT Erik S Reinert, Jayati Ghosh and Rainer Kattel - 9781782544661 Downloaded from Elgar Online at 03/31/2017 12:04:16PM via University College London REINERT_97817825444661_t.indb i 03/10/2016 11:36 Erik S Reinert, Jayati Ghosh and Rainer Kattel - 9781782544661 Downloaded from Elgar Online at 03/31/2017 12:04:16PM via University College London REINERT_97817825444661_t.indb ii 03/10/2016 11:36 Handbook of Alternative Theories of Economic Development Edited by Erik S Reinert Professor of Technology Governance and Development Strategies, Talllinn University of Technology, Estonia and Head of The Other Canon Foundation, Norway Jayati Ghosh Professor, Centre for Economic Studies and Planning, Jawaharlal Nehru University, India Rainer Kattel Professor of Innovation Policy and Technology Governance, Tallinn University of Technology, Estonia Cheltenham, UK • Northampton, MA, USA Erik S Reinert, Jayati Ghosh and Rainer Kattel - 9781782544661 Downloaded from Elgar Online at 03/31/2017 12:04:16PM via University College London REINERT_97817825444661_t.indb iii 03/10/2016 11:36 © Erik S Reinert, Jayati Ghosh and Rainer Kattel 2016 All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher Published by Edward Elgar Publishing Limited The Lypiatts 15 Lansdown Road Cheltenham Glos GL50 2JA UK Edward Elgar Publishing, Inc William Pratt House Dewey Court Northampton Massachusetts 01060 USA A catalogue record for this book is available from the British Library Library of Congress Control Number: 2016931786 This book is available electronically in the Economics subject collection DOI 10.4337/9781782544685 ISBN 978 78254 466 (cased) ISBN 978 78254 468 (eBook) Typeset by Servis Filmsetting Ltd, Stockport, Cheshire 01 Erik S Reinert, Jayati Ghosh and Rainer Kattel - 9781782544661 Downloaded from Elgar Online at 03/31/2017 12:04:16PM via University College London REINERT_97817825444661_t.indb iv 03/10/2016 11:36 Contents List of contributors Introduction by Erik S Reinert, Jayati Ghosh and Rainer Kattel PART I viii xiii DEVELOPMENT THINKING ACROSS HISTORY AND GEOGRAPHY Giovanni Botero (1588) and Antonio Serra (1613): Italy and the birth of development economics Erik S Reinert Economic emulation and the politics of international trade in early modern Europe Sophus A Reinert 42 Cameralism and the German tradition of development economics Erik S Reinert and Philipp R Rössner 63 Friedrich List: the international dynamics of mindpower Arno Mong Daastøl 87 Kathedersozialismus and the German Historical School Wolfgang Drechsler 109 Chinese development thinking Ting Xu 124 The economic cycle of Imperial China and its development Xuan Zhao 137 Islam and capitalism: military routs, not formal institutions Ali Kadri 161 Unity and diversity in the Ottoman school of national economy: a reappraisal of Ziya Gökalp and Ethem Nejat Eyüp Özveren, Mehmet Salih Erkek and Hüseyin Safa Ünal 10 Indian development thinking Goddanti Omkarnath 11 Latin American structuralism: the co-evolution of technology, structural change and economic growth Mario Cimoli and Gabriel Porcile 12 194 212 Revisiting the debate on national autonomous development in Africa Issa G Shivji 228 240 v Erik S Reinert, Jayati Ghosh and Rainer Kattel - 9781782544661 Downloaded from Elgar Online at 03/31/2017 12:04:16PM via University College London REINERT_97817825444661_t.indb v 03/10/2016 11:36 vi Handbook of alternative theories of economic development 13 Development as the struggle for liberation from hegemonic structures of domination and control Yash Tandon 256 14 The League of Nations and alternative economic perspectives Carolyn N Biltoft 270 15 The Havana Charter: when state and market shake hands Jean-Christophe Graz 281 16 The UNCTAD system of political economy Ricardo Bielschowsky and Antonio Carlos Macedo e Silva 291 PART II APPROACHES TO UNDERSTANDING DEVELOPMENT 17 Marxist theory and the ‘underdeveloped economies’ Prabhat Patnaik 307 18 Economic development as an evolutionary process Richard R Nelson 323 19 Classical development economists of the mid-twentieth century Rainer Kattel, Jan A Kregel and Erik S Reinert 336 20 Development and régulation theory Robert Boyer 352 21 The dependency school and its aftermath: why Latin America’s critical thinking switched from one type of absolute certainties to another José Gabriel Palma 386 22 Feminist approaches to development Maria Sagrario Floro 416 23 Reading Freeman when ladders for development are gone Rodrigo Arocena and Judith Sutz 441 24 Albert O Hirschman Michele Alacevich 456 25 Michal Kalecki Jayati Ghosh 475 PART III 26 27 ISSUES IN DEVELOPMENT The agrarian question and trajectories of economic transformation: a perspective from the South Sam Moyo, Praveen Jha and Paris Yeros The effective demand approach to economic development Jan A Kregel 487 504 Erik S Reinert, Jayati Ghosh and Rainer Kattel - 9781782544661 Downloaded from Elgar Online at 03/31/2017 12:04:16PM via University College London REINERT_97817825444661_t.indb vi 03/10/2016 11:36 Contents vii 28 Development planning C.P Chandrasekhar 519 29 The Nordic route to development Lars Mjøset 533 30 Competitiveness and development: a Schumpeterian approach Mehdi Shafaeddin 570 31 Innovation systems and development: history, theory and challenges Bengt-Åke Lundvall 594 32 Latecomer industrialization John A Mathews 613 33 The developmental state in the late twentieth century Elizabeth Thurbon and Linda Weiss 637 34 Development, ecology and the environment Edward B Barbier and Jacob P Hochard 651 35 Competition, competition policy, competitiveness, globalization and development Ajit Singh 666 Knowledge governance: intellectual property management for development and the public interest Leonardo Burlamaqui 689 Legal structures and economic development: towards an ideal economic analysis of a legal problem Jürgen G Backhaus 703 36 37 38 Deindustrialization and premature deindustrialization Fiona Tregenna 39 The post-Soviet industrial extinctions and the rise of jihadi terrorism in the North Caucasus Georgi Derluguian 729 Epilogue: the future of economic development between utopias and dystopias Erik S Reinert, Sylvi Endresen, Ioan Ianos, and Andrea Saltelli 738 40 Index 710 787 Erik S Reinert, Jayati Ghosh and Rainer Kattel - 9781782544661 Downloaded from Elgar Online at 03/31/2017 12:04:16PM via University College London REINERT_97817825444661_t.indb vii 03/10/2016 11:36 Contributors Michele Alacevich is the Director of the Global Studies Program and Assistant Professor in the History Department of Loyola University, Maryland, USA Rodrigo Arocena is Full Professor of Science and Development in the Faculty of Sciences, Universidad de la República, Uruguay Jürgen G Backhaus holds the Krupp Chair in Public Finance and Fiscal Sociology at Erfurt University, Germany Edward B Barbier is the John S Bugas Professor of Economics, Department of Economics and Finance, University of Wyoming, USA Ricardo Bielschowsky is Professor of Economics at the Rio de Janeiro Federal University, Brazil Robert Boyer is Professor at Institut des Amériques, France Leonardo Burlamaqui is Associate Professor at the Department of Economic Evolution, State University of Rio de Janeiro, Research Scholar at the Levy Institute – Bard College, USA, and Adjunct Professor at the Graduate Program in Public Policies and Development Strategies at the Federal University at Rio de Janeiro, Brazil Carolyn N Biltoft is an Assistant Professor in International History at the Graduate Institute for International and Development Studies in Geneva, Switzerland C.P Chandrasekhar is Professor of Economics at Jawaharlal Nehru University, New Delhi, India Mario Cimoli is the Director of the Division of Production, Productivity and Management at the UN’s Economic Commission for Latin America and the Caribbean and Professor of Economics at the University of Venice, Italy Arno Mong Daastøl runs a small consultancy, Innotrans, in economics and advanced transportation, based in Oslo, Norway Georgi Derluguian is Professor of Social Research and Public Policy at New York University Abu Dhabi Wolfgang Drechsler is Professor and Chair of Governance at the Ragnar Nurkse School of Innovation and Governance at Tallinn University of Technology, Estonia Sylvi Endresen is Associate Professor of Human Geography at the University of Oslo, Norway Mehmet Salih Erkek is Assistant Professor of History at Uşak University, Turkey Maria Sagrario Floro is Professor of Economics at American University in Washington, viii Erik S Reinert, Jayati Ghosh and Rainer Kattel - 9781782544661 Downloaded from Elgar Online at 03/31/2017 12:04:16PM via University College London REINERT_97817825444661_t.indb viii 03/10/2016 11:36 Contributors ix DC and co-director of the Graduate Program on Gender Analysis in Economics (PGAE), USA Jayati Ghosh is Professor at the Centre for Economic Studies and Planning, School of Social Sciences, Jawaharlal Nehru University, New Delhi, India She is also Executive Secretary of International Development Economics Associates Jean-Christophe Graz is Professor of International Relations at the Institut d’Études Politiques, Historiques et Internationales of the University of Lausanne, Switzerland Jacob P Hochard is an economics PhD candidate at the University of Wyoming, USA Ioan Ianos is Professor of Geography and Director of the Interdisciplinary Centre for Advanced Research on Territorial Dynamics at the University of Bucharest, Romania Praveen Jha is Professor of Economics with the Centre for Economic Studies and Planning (CESP), and concurrent faculty as well as Chairperson of the Centre for Informal Sector and Labour Studies (CISLS), School of Social Sciences, Jawaharlal Nehru University, New Delhi, India Ali Kadri is Senior Research Fellow at the National University of Singapore (NUS) Rainer Kattel is Professor and Chair of Innovation Policy and Technology Governance at the Ragnar Nurkse School of Innovation and Governance at Tallinn University of Technology, Estonia, and Visiting Scholar at the Earth Institute, Columbia University, USA Jan A Kregel is Director of Research at the Levy Institute and Head of its Monetary Policy and Financial Structure program, and Professor of Development Finance at the Ragnar Nurkse School of Innovation and Governance at Tallinn University of Technology, Estonia Bengt-Åke Lundvall is Professor of Economics at Department of Business and Management at Aalborg University, Denmark John A Mathews is Professor of Strategy at Macquarie Graduate School of Management, Macquarie University, Sydney, Australia Lars Mjøset is Professor of Sociology and Director of the Oslo Summer School for Comparative Social Science Studies at the Social Science Faculty, University of Oslo, Norway Sam Moyo was a pioneer of the analysis of agrarian change and development in Africa Until his untimely death, he was Executive Director of the African Institute of Agrarian Studies (AIAS), based in Harare, Zimbabwe Richard R Nelson heads the Program on Science, Technology, and Global Development at the Earth Institute, and is George Blumenthal Professor Emeritus of International and Public Affairs, Business, and Law, both at Columbia University, NY, USA Goddanti Omkarnath is Professor at the School of Economics, University of Hyderabad, India Erik S Reinert, Jayati Ghosh and Rainer Kattel - 9781782544661 Downloaded from Elgar Online at 03/31/2017 12:04:16PM via University College London REINERT_97817825444661_t.indb ix 03/10/2016 11:36 x Handbook of alternative theories of economic development Eyüp Özveren is Professor of Economics at the Middle East Technical University in Ankara, Turkey José Gabriel Palma is Senior Lecturer Emeritus at the Faculty of Economics, University of Cambridge, UK, and Professor of Economics at the University of Santiago, Chile (USACH) Prabhat Patnaik is Emeritus Professor of Economics at Jawaharlal Nehru University, New Delhi, India Gabriel Porcile is Economic Affairs Officer of the Economic Commission for Latin America and the Caribbean, Professor of Economics at the Federal University of Paraná, Brazil, and Researcher of CNPq, Brazil Erik S Reinert is Professor of Development Strategies at Tallinn University of Technology, Estonia and heads The Other Canon Foundation in Norway Sophus A Reinert is Marvin Bower Associate Professor of Business Administration in the Business, Government and the International Economy Unit at Harvard Business School, USA Philipp R Rössner is Lecturer in Early Modern History, University of Manchester, UK Andrea Saltelli is Researcher at the European Centre for Governance in Complexity, Barcelona, Spain Mehdi Shafaeddin is a freelance consultant to international development organizations, based in Mies, Switzerland Antonio Carlos Macedo e Silva is faculty member at the University of Campinas, São Paulo, Brazil Ajit Singh was a prolific and influential economist who taught and researched at the University of Cambridge, UK, until his death in 2015 Issa G Shivji is Director of Nyerere Resource Centre and Emeritus Professor of Law at the University of Dar es Salaam, Tanzania Judith Sutz is Full Professor at the Universidad de la República, Uruguay Yash Tandon is from Uganda and has worked at many different levels as an academic, a teacher, a political thinker, a rural development worker, a civil society activist, and an institution builder Elizabeth Thurbon is a Senior Lecturer in International Relations at the School of Social Sciences, UNSW, Australia Fiona Tregenna holds the South African Research Chair in Industrial Development and is a Professor in the Department of Economics and Econometrics at the University of Johannesburg, South Africa Hüseyin Safa Ünal is a PhD student in economics at University of Missouri, Columbia, MO, USA Erik S Reinert, Jayati Ghosh and Rainer Kattel - 9781782544661 Downloaded from Elgar Online at 03/31/2017 12:04:16PM via University College London REINERT_97817825444661_t.indb x 03/10/2016 11:36 ... 11:36 xiv Handbook of alternative theories of economic development A massive two-volume work on economic development edited by two World Bank economists, the 1988 Handbook of Development Economics,... 03/10/2016 11:36 Handbook of Alternative Theories of Economic Development Edited by Erik S Reinert Professor of Technology Governance and Development Strategies, Talllinn University of Technology,... REINERT_97817825444661_t.indb ix 03/10/2016 11:36 x Handbook of alternative theories of economic development Eyüp Özveren is Professor of Economics at the Middle East Technical University in