Government Financing of Economic Development Abroad

The financing of economic development became a major concern of governments in liberal societies and economies largely during or after the Great Depression of the early thirties and the economic debates of that period. At first the state was assigned the role of minimizing or eliminating economic cycles. Later this role was enlarged to include the guiding and promotion of national economic activities toward progressive económic growth. The instruments advocated and used for these purposes have been mainly financial. The revolution which has occurred in the nature and scope of these instruments is far from complete, especially in the underdeveloped areas of the world.