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Financing Development

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  • Fernando J. Cardim de Carvalho

Abstract

Developing economies were traditionally conceived as economies where capital was scarce with respect to labor and land. Capital scarcity was explained by different reasons, such as low domestic savings propensities (the poor were too poor to save and the rich consumed like their counterparts in developed economies), international exploitation (as in theories of imperialism), and so on. Nowadays these theories face the problem of having developing economies actually exporting savings to developed countries. In development theory, as in all macroeconomics, the concept of savings has been diffcult to grasp, with different authors talking at cross purposes. Financing development, in particular, is surrounded by conceptual and analytical inconsistencies, which responds for at least part of the confusion that reigns in this subdiscipline. This paper tries to dispel some of these confusions by exploring the different meanings of the term "financing" and examining what each one implies for the discussion of overcoming development (itself, in fact, a rather equivocal term, as the paper also suggests).

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Bibliographic Info

Article provided by M.E. Sharpe, Inc. in its journal International Journal of Political Economy.

Volume (Year): 38 (2009)
Issue (Month): 4 (December)
Pages: 5-24

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Handle: RePEc:mes:ijpoec:v:38:y:2009:i:4:p:5-24

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Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=110909

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Keywords: development; financing development; savings;

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