Economic Development: The History of an Idea

by H.W. Arndt

" Economic Development makes an important contribution of the literature on economic development, especially as it incorporates ideas on a theme that informs our concern for social justice, individual and social freedom, identify, and community."—Winston E. Langley, Annals of the American Academy of Political and Social Science

Genres: Economics

230 pages, Paperback

First published December 31, 1987

Reviews

[Kevin · Rating 3 out of 5]

In Arndt’s writings, the concept of economic development as a catalyst for socio-economic growth is presented as the predominant philosophy of “more advanced,” industrialized nations of the postwar environment from 1945 to, approximately, 1965. As a result of the emphasis on promoting economic development in disadvantaged, third world nations, many theorists believed that investments in the training and education of a country’s people, an investment in “human capital,” was a logical and practical step toward overcoming stagnant economic growth rates.

Intellectual Exodus

One interesting side effect of the foreign investment in human capital is what Arndt refers to as the “brain drain.” What the proponents of education and training investment failed to forecast was the migration of skilled personnel, mainly medical doctors and engineers, to richer, more technologically advanced countries. This constituted a loss of human capital for developing nations and led to much concern and debate on how to properly resolve this problem.

The phenomenon of “brain drain” (a recurring theme of Arndt’s economic theory) is an inevitable side effect of rapid technological advancement. For industrialized nations, the cutting edge of technology rarely surpasses the education level of the engineers and technicians who are developing and refining it. However, if nations which lag behind in technology are to benefit from the knowledge of more progressive countries, then one of two possible scenarios can be expected to occur; either the technology level exceeds the education and experience level of available personnel - leading to its inefficient utilization, or the education and experience level exceeds the level of technology - leading to the brain drain. A third option would be to incorporate the level of technology at precisely the same rate as educational growth. This would require extensive monitoring and planning at a level that would not be cost effective and may, by nature of complexity, hamper economic growth assistance, perhaps to the point of negating it altogether.

[flaams · Rating 3 out of 5]

I'm so done with this