Capitalism and Development

Abstract

This chapter explores the dynamics and implications of inward-looking versus outward-looking accumulation strategies in economic development. It finds that prioritizing one strategy inherently downplays the variables of the other, revealing a fundamental trade-off. The state's role in choosing and implementing these strategies is crucial, shaped by internal political actors and external economic conditions, raising questions about the interplay between state policy and economic actors. The concept of strategy is examined at both micro and macro levels: micro-level adjustments among economic actors create a dynamic, complex environment, while macro-level strategies may overlook certain variables to achieve broader goals. The chapter aligns with capitalist development and dependency theories, highlighting the state's role in sustaining capitalist economies. It covers stages of capitalist development and their global interplay, focusing on inward-looking strategies like import substitution and state intervention.