The Present State of the Theory of Development Economics in the Economic Thought

Abstract

Development economics became a separate discipline in economic science in the 50s but only in the 60s and mid-70s one noted a bigger interest in those issues. In the 80s it turned out that despite same successes the economic progress in developing countries was less satisfactory than expected. In the mid 70s and 80s development economists became mare sceptical in their evaluation of competence and motivation of national governments. Specialists in this discipline started arguingforfree market andfree international trade. However, in the mid-80s one noted a serious deadlock ofthis discipline because ofthe generał[ailure of economic development ofthe Third World. There took place a movement of economic theory and practice in the direction of neo-classical solutions. Many politicians and scientists believed strongly in the effectiveness of the so called Washington consensus. In the light ofthis analysis it is doubtless that development economics is still in deadlock. Unfortunately, neo-classical hopes have not been fulfilled. The Washington consensus was not enough to trigger offlong-term developmental processes. The post-Washington consensus is emerging and the debate on the economic development needs to re-start: again. However, the past lessons should not be forgotten.