The Theoretical Provision of Research on the Problem of Country Falling into the «Backwardness Trap»

Abstract

Economic backwardness is a global problem that causes a number of socio-economic troubles, increases social tension and reduces the effectiveness of functioning of social institutions of the country in general. A new period of global uncertainty and the unfolding of the economic crisis along with the subsequent recession associated with the reduction of economic activity as a result of the pandemic makes it relevant to look for ways of restoring the economic growth for every country of the world. Under these conditions, studies of chronic economic backwardness of a country and its falling into the «backwardness trap», which is based on a number of theories and conceptions that consider various aspects of the socio-economic development of the country, become specially relevant. The article is aimed at forming a theoretical grounds for studying the problem of country falling into the «backwardness trap», which is based on a generalization of the essence and basic ideas of theories and conceptions that explore the processes of socio-economic development of the countries over the world. The studies, dedicated to identifying and systematizing the factors that inhibit the socio-economic development of the country, display a certain evolution. At the first stage there was a search for a key factor of economic backwardness of the country (J. Keynes, H. Singer, R. Prebisch, H. Leibenstein, etc.). The second stage was devoted to the search for relationships between several key factors (R. Nurkse, R. Lucas, H. Uzava, etc.). At the third stage of the research, a detailed study of institutional factors inhibiting economic development was carried out (B. Knall, Th. Bethell, etc.). At the fourth stage, there was a deepening of research in the direction of developing a comprehensive interdisciplinary approach to the problems of formation of the «backwardness trap» (A. Danylenko, G. Bashnyanin, Y. Savelyev, R. Nureyev, etc.). The theoretical basis of the research on the trap of economic backwardness of the country is characterized by the presence of a significant number of theories and conceptions that generalize the common features of countries whose economies develop at a low rate compared to developed economies or enter into a state of prolonged stagnation, as well as the factors contributing to the crystallization of such a state.