Kicking Away the Ladder: Development Strategy in Historical Perspective - Assignment Example

Thereby preventing developing countries from adopting polices and institutions they themselves used to achieve drastic economic development.   This brings into the question what motives does this countries aim to achieve by deliberately preventing other countries to follow the same development path.

For example Britain being founder of modern laissez faire doctrines which advocate for free trade and without significant state intervention.  But in contrast Britain has introduced policies aimed at promoting local manufacturing industries. The government also introduced new laws aimed at importation of law material and exportation of finished goods. These clearly contradict the idea of free trade they advocate to developing countries.  Chang tries to question this phenomenon and puts it in his book” Kicking Away the Ladder: Development Strategy in Historical Perspective (2002)”

Alice also Alice Madsen political economist and researcher contributed to development economics in a special way. His works combined theory, careful field work and quantitative analysis to build on her economic arguments. She was keen on East Asia nations on how they tried to transform from subsistence agricultural economies to newly industrialized nations. Alice differed with developed economies on policies that should be by developing economies to achieve economic growth. The world trade organization, World Bank, international monetary fund (IMF) and foreign departments of development countries limit developing economies to use various instruments to achieve development. She argued that that developing economies should develop their own development strategies in order to grow their economies. Relling on foreign made policies would greatly disadvantage their development agenda. She emphasized on the need for developing nations to put discipline at the centre of development planning and carefully evaluate effectiveness of development projects in the countries. She recognized that diversifying from agricultural based economies to knowledge base industrialize economies was important.  By diversifying local economies would reduce inefficiencies brought by importation especially of finished products such as machinery and high quality goods. This can be achieved by developing countries building systems and institution that control the economy. This includes protectionist idea that controls various economic actives.  Countries can also diversify economies by use of subsidies to boost local production. A good example is South Korea that has diversified from rice production which it posses completive advantage to an industrialized economy. This has helped maintain a positive balance of trade. This has been achieved through set of various programs and institutions developed by South Korean government. This is achieved by a favorable macroeconomic framework and clear policies aimed to economic development.

Alice Amend and Ha Jon Chang have made major contributions on the theory of economic development. This has paved way for developing economies to rethink their development strategies without fear. Adopting foreign imposed ideas and policies could have serious economies inefficiencies.