Is Learning a Wonder Weapon of Endogenous Economic Growth?

Abstract

This essay attempts to refute the practicality of the main policy propositions of the book by Joseph Stiglitz and Bruce Greenwald (S&G) entitled Creating a Learning Society. More specifically, it looks at the 700-page scholarly work from the perspective of countries struggling to catch up with the advanced Western countries. In the opinion of the author, S&G use the term "learning" in such a broad sense that it becomes almost meaningless as an explanatory factor and/or an objectively verifiable indicator. Equally important, by using such a value-loaded, entirely positive term like "learning", S&G create a misleading feeling in the readers: catching-up is easy (win-win). As history has shown, it is not easy. In the paper, the model of a lesser known Hungarian economist, Ferenc Jánossy (1914-1997), is presented as a more convincing explanation of endogenous economic growth.