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By R. C. Mascarenhas

During this learn, the writer adopts an interdisciplinary viewpoint on 3rd global improvement, spotting the significance of the interrelationships among the economic system and the society and emphasizing the necessity to direct consciousness to political, institutional and old elements. The political financial system process followed during this examine examines the position of the nation in selling political and socio fiscal improvement. It takes the location that the country and industry play a complementary function in that advertising, yet arriving on the acceptable combine is the true challenge for policymakers.

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Extra resources for Comparative Political Economy of East and South Asia: A Critique of Development Policy and Management

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By these standards over 500 million in South Asia suffer from deprivation in health and education (The Hindu, May 12, 1997). (See Table III-1). The emphasis now placed on quality of life (Lane, 1996) is attributable to disillusionment with the consequences of growth like increased poverty, growing inequality and the concern for distributive justice. According to Qizilbash (1996) these are issues of ‘ethical development’. Attainment of these new measures, however, seems a distant goal for many TW countries.

Influenced by their imminent emergence from colonialism, the obvious alternative model appeared to be the planned economy of the Soviet Union (the Second World). The success of the Soviet Union as an ally of the west in World War II, followed by achievements in industry and technology, instilled confidence in the TW’s attempts at state intervention. This assessment by TW policy elites and their advisers (who were generally products of European universities) was encouraged by Keynesian economics as intellectual support for the adoption of state intervention (Arndt, 1987, 57–58).

Solomon (1995) analyses TW markets into five categories: the market for personal services, the market for perishable produce, the market for agricultural staples, the market for manufactured consumer goods and lastly the capital goods market. Of these, Solomon regards both the consumer goods market and the capital goods market as having some resemblance to the organized sector in FW economies. While the consumer goods market suffers less from market fluctuations and more from the uncertainties of government intervention, which ‘takes the form of spasmodic and inconsistent sallies into various sectors of the economy’, the capital goods market is the least developed.

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