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Development and Social Goals: Balancing Aid and Development to Prevent ‘Welfare Colonialism’

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  • Erik S. Reinert

Abstract

The current development policy focus on poverty reduction is erroneous. Historically, successful development policy—from the late fifteenth century until the beginning of the twenty-first—has achieved structural change away from dependence on raw materials and agriculture, adding specialized manufacturing and services subject to increasing returns with a complex division of labour. In contrast, the Millennium Development Goals are heavily biased in favour of palliative economics: alleviating the symptoms of poverty, rather than attacking its real causes. This creates a system of ‘welfare colonialism’ increasing the dependence of poor countries, thereby hindering, rather than promoting, long-term structural change.

Suggested Citation

  • Erik S. Reinert, 2006. "Development and Social Goals: Balancing Aid and Development to Prevent ‘Welfare Colonialism’," Working Papers 14, United Nations, Department of Economics and Social Affairs.
  • Handle: RePEc:une:wpaper:14
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    File URL: http://www.un.org/esa/desa/papers/2006/wp14_2006.pdf
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    References listed on IDEAS

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    1. List, Friedrich, 1885. "The National System of Political Economy," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number list1885.
    2. Erik S. Reinert, 1999. "The role of the state in economic growth," Journal of Economic Studies, Emerald Group Publishing, vol. 26(4/5), pages 268-326, September.
    3. Frank D. Graham, 1923. "Some Aspects of Protection Further Considered," The Quarterly Journal of Economics, Oxford University Press, vol. 37(2), pages 199-227.
    4. Reinert, Erik S. & Kattel, Rainer, 2004. "The Qualitative Shift in European Integration: Towards permanent wage pressures and a ‘Latin-Americanization’ of Europe?," MPRA Paper 47909, University Library of Munich, Germany.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. What Can We Learn from Alternative Theories of Economic Development?
      by Ingrid Harvold Kvangraven in Development Economics on 2017-01-29 21:17:34

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    Cited by:

    1. Küblböck, Karin, 2005. "HIPC and beyond: Entschuldungsinitiativen und -vorschläge auf dem Prüfstand," Working Papers 7, Österreichische Forschungsstiftung für Internationale Entwicklung (ÖFSE) / Austrian Foundation for Development Research.
    2. Codrina Rada & Lance Taylor, 2006. "Developing and Transition Economies in the Late 20th Century: Diverging Growth Rates, Economic Structures, and Sources of Demand," Working Papers 34, United Nations, Department of Economics and Social Affairs.
    3. Lance Taylor, 2009. "Growth, Development Policy,Job Creation and Poverty Reduction," Working Papers 90, United Nations, Department of Economics and Social Affairs.
    4. John E. King, 2010. "Kaldor and the Kaldorians," Chapters,in: Handbook of Alternative Theories of Economic Growth, chapter 7 Edward Elgar Publishing.
    5. Mansour Omeira & Simel Esim & Sufyan Alissa, 2008. "Labor Governance and Economic Reform in the Middle East and North Africa: Lessons from Nordic Countries," Working Papers 436, Economic Research Forum, revised 09 Jan 2008.

    More about this item

    Keywords

    Millennium Development Goals; economic development; palliative economics; welfare colonialism;

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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