Answer to Question #137668 in Microeconomics for Alpha

Question

Giving the diversity of developing countries, do you think that there could ever be a single unified theory of development?

Answer 1

Each developing nation is different in its own kind and thought. Their process and efficiency of development is also different. The diversity exists among the nations on certain parameters that are:

• different level of standard of living and labor productivity.
• different geography
• different size of population
• Different level of economic inequality and absolute poverty
• Different level of industrialization
• Different history of colonial and exploitation and a lot of dependence of foreign aid and markets.

The theory of development are based on the personal view points of various economists and their application to the real life situation of various under developed nations. Thus ,cannot be one theory of development for all the underdeveloped nations. The government of each of these nation should identify their respective constraints to development and devise policies that remove these constraints to achieve faster economic development.