Étatisme as the Root of Development Economics

Author:

Omidi Vahid1ORCID,Shahabadi Abolfazl1ORCID

Affiliation:

1. Alzahra University

Abstract

Development economics has invested substantial effort in formulating policies aimed at initiating development in underdeveloped countries, with a notable emphasis on the role of government. This article focuses on the transition from early intellectual forerunners such as John Locke, David Hume, and Adam Smith to the subsequent theories of development. Previous examinations, notably by Lewis (1988) and Sen (1983), have argued that if growth is taken as the definition of development, then Petty, Hume, and Smith are predecessors of development economics. However, a gap exists between this observation and the subsequent trajectory of development economics. This article investigates the prevalent role of the state in shaping development strategies, exploring the maturation of state duties based on modern political concepts from the seventeenth and eighteenth centuries and investigating the transformation in the twentieth century of government’s responsibilities, specifically in the context of the United States’ progressive movement. By tracing the historical evolution of state involvement, this article shows that the concept of “étatisme,” advocating robust state engagement in economic affairs, emerges as a pivotal but often overlooked factor in the emergence of development economics. This finding illustrates why development economists’ policies historically place such significant emphasis on government intervention in the market in underdeveloped countries.

Funder

Alzahra University

Publisher

Mises Institute

Subject

General Economics, Econometrics and Finance

Reference55 articles.

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3. Bastiat, Frédéric. 2007. The Law. Auburn, Ala.: Ludwig von Mises Institute. First published 1850. https://cdn.mises.org/thelaw.pdf.

4. Bauer, Péter Tamás. 1976. Dissent on Development. Cambridge, Mass.: Harvard University Press.

5. Berns, Laurence. 1987. “Thomas Hobbes.” In History of Political Philosophy, edited by Leo Strauss and Joseph Cropsey, 396–420. Chicago: University of Chicago Press.

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