The Unequalizing Spiral: A First Growth Model for Belindia

Taylor, Lance; Bacha, Edmar

doi:10.2307/1884627

Cited by 65 publications

(29 citation statements)

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“…Actual industrialization was turning excessively capital-and I am very grateful to three referees for useful and open-minded comments on this essay, the writing of which was inspired by Mark Twain's maxim: 'whenever you find yourself on the side of the majority, it is time to pause and reflect'. import-intensive, increasingly dominated by a coalition of big metropolitan multinational corporations and a domestic bourgeoisie, and un-equalizing (Chenery et al, 1974;Taylor and Bacha, 1976), creating a more insidious, namely domestic, dependency. 'Hence one is only too ready to read evidence of total failure in any trouble it encounters ', predicted Hirschman (1968: 32), and so it happened: when the 'easy' phase of industrialization, based on import substitution, had been exhausted in the early 1970s, disenchantment turned into disillusion, feeding and reinforcing (often predictable) critiques.…”

Section: The Life Death and Rebirth Of A Strategymentioning

confidence: 99%

Structural Change

Storm¹

2015

Development and Change

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Development economics appears to have come full circle, as interest in and concern for industrialization have made a comeback, echoing major concerns of the early development economists. However, when it comes to the practice of industrialization strategy and industrial policy, the default recommendation is still the market and static comparative advantage — the main task of governments, in the new view, is to impose institutional reforms and improve governance so as to allow markets to perform more efficiently. History is thus about to repeat itself, but this time as farce, because no country has managed to climb the industrial ladder just by ‘getting prices and institutions right’. We have to re‐learn the old lessons of how to industrialize, learning from past mistakes and taking into account new challenges posed by today's global realities.

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Section: The Life Death and Rebirth Of A Strategymentioning

confidence: 99%

Structural Change

Storm¹

2015

Development and Change

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“…Writing in the 1970s, Hollis Chenery, Montek Ahluwalia et al (1974), Irma Adelman and Cynthia Morris (1973), Albert Fishlow (1972), and Pranab Bardhan (1973) all argued that economic development either left the poor behind or actually made them worse off, see William Cline (1975) for a contemporary survey. Lance Taylor and Edmar Bacha (1976) constructed a growth model of "Belindia," a tiny rich Belgium in a huge poor India, as an example of "the unequalizing spiral" that they saw as fitting the stylized facts of development.…”

Section: Introductionmentioning

confidence: 99%

Measuring Poverty in a Growing World (or Measuring Growth in a Poor World)

Deaton

2005

Review of Economics and Statistics

493

304

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Abstract-The extent to which growth reduces global poverty has been disputed for 30 years. Although there are better data than ever before, controversies are not resolved. A major problem is that consumption measured from household surveys, which is used to measure poverty, grows less rapidly than consumption measured in national accounts, in the world as a whole and in large countries, particularly India, China, and the United States. In consequence, measured poverty has fallen less rapidly than appears warranted by measured growth in poor countries. One plausible cause is that richer households are less likely to participate in surveys. But growth in the national accounts is also upward biased, and consumption in the national accounts contains large and rapidly growing items that are not consumed by the poor and not included in surveys. So it is possible for consumption of the poor to grow less rapidly than national consumption, without any increase in measured inequality. Current statistical procedures in poor countries understate the rate of global poverty reduction, and overstate growth in the world.

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“…Brazil was perceived as the combination of a small rich Belgium surrounded by a large poor India. In Bacha's fable, the "King of Belindia" is bewildered at a visiting economist's revelation that the rate of growth would be low if the adopted weighting scheme was poor-based and democratic-based, instead of rich-based (see also Taylor and Bacha 1976 for an analytical take). Bacha's (1974b) own explanation of 13 Malan also mentioned this episode in D'Araújo (2005, income concentration was based on the perceived wage squeeze together with the notion that income differentials reflected firms' organizational hierarchy and profit rates instead of skills, as indicated by sample data (see also Bacha 2018, 332-34).…”

Section: The Criticsmentioning

confidence: 99%

Economic Debates under Authoritarian Regimes: The Case of the Income Distribution Controversy in Brazil in the 1970s

Andrada

Boianovsky

2019

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.Abstract. The paper investigates the political and economic contexts of the controversy about the causes of the significant increase of income concentration in Brazil during the 1960s. That was the most important economic debate that took place under the military dictatorship that ran the country from 1964 to 1985. The perceived sharp increase in income inequality posed a challenge to the economic legitimation of the military regime, which had by the early 1970s achieved high rates of economic growth accompanied by falling inflation. We discuss the reasons behind the relatively open economic debate during a period of political repression, as well as its international dimension as reflected in the role played by institutions such as the World Bank.

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The Unequalizing Spiral: A First Growth Model for Belindia

Cited by 65 publications

References 0 publications

Structural Change

Structural Change

Measuring Poverty in a Growing World (or Measuring Growth in a Poor World)

Economic Debates under Authoritarian Regimes: The Case of the Income Distribution Controversy in Brazil in the 1970s

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