Redistributive Strategies

For nearly four decades from 1914 to 1950 the world economy suffered from war, stagnation, a great depression, war again and finally post-war reconstruction. It was natural that after such a sequence of events governments in both the industrialised and in the newly independent Third World countries would make growth their first priority. Latin America, long independent but still a relatively poor part of the globe, had experienced rising incomes per head during the period 1914-50, but it had suffered a severe setback during the first half of the great depression and was anxious to maintain the growth momentum that was rekindled by the structural reforms of the early 1930s1. Thus in Latin America, too, growth was the top priority. Only in China, which had experienced a revolutionary change of regime in 1949, was the quest for growth subservient to the commitment to create a socialist society and even there the need to increase production was seen to be urgent. The big exception in the 1950s was of course Africa, which still was largely colonised and which did not therefore have control over its economic policies. Beginning with the 1960s, however, most of Africa achieved its independence and growth then became top priority there too. Thus virtually the entire world by 1960 wished to pursue growth-oriented strategies of development.