TITLE : ECONOMIC DEVELOPMENT OF A SMALL PLANET.*

CONTENTS
 
1	A System of Mutual Vulnerability  1
Economic Interdependence 3
Environmental Interdependence 6
The Development Crisis 12
New Development Patterns 17
Conclusions: The Crisis of Economics 22
 
2	Panaceas for Progress  25
The Classical Theory of Capitalist Development: Growth and
    Stagnation 26
The Economic Mechanism 27
The Successes of Laissez-faire 31
The Classical System 32
The Classical Model 34
The Malthus Version 35
The Marxist Model: Growth and Collapse 38
The Neoclassical School 43
The Seamless Web 46
Economics Becomes Operational: Socialist Planning and Keynesian
   Management 52
Problems of Post-World War II Economics 57
Contemporary Development Economics 63
Conclusions 64
 
3	Development of Advanced Countries: Capitalism and Socialism  66
The Rise of Capitalism 67
Stages of Economic Growth 73
Experiments with Promoted Growth 74
Conclusions 82
 
4  Economic Stagnation: Colonialism and Foreign Trade  83
The Role of International Trade 84
Regional Gaps and Trade-Off Curve Theory 98
Dependency Versus Dualism 100
Current Trade Problems 100
Foreign, Investment and the Multinational Enterprises 105
Foreign Aid 115
Conclusions. NewDirections 116
 
5	Environmental and Sociocultural Determinism  117
Environmental Determinism 119
Sociocultural Determinism 125
Can Sociocultural Characteristics Be Insuperahle Barriers to Economic
   Growth? 128
Social Framework and Development 134
What Need Change and What Need Not? 137
The Political Framework of Development 146
Towards a Unified Approach 151
 
6	Formulas for Development  153
Development of the Labor Surplus Economy 154
The Agricultural Lag 155
The Industrial Capital Lag 160
Transferring Agricultural Labor 162
The Industrial Employment Lag 163
Restraining Population Growth 167
The Basic Needs Approach 167
An Integrated Development Program 170
 
7	Planning Development: Strategies  173
Raising Output per Man-Hour 175
The Balances 176
Perspective Planning 178
Balanced or Unbalanced Growth? 179
Balanced Growth of Agriculture and Industry: Mexico 180
Balance among Projects 183
Balance between Income Maximization and Employment Maximization 194
Summary 201
 
8	Planning Development: Programming  202
Soviet-Style ' 'Balance Planning" 203
The Market Economy 203
Planning for Underdeveloped Countries 205
Planning Social Security and Housing 213
Conflict Between Goals: Maximizing Employment versus Maximizing
  Income 217
The Unified Approach 218
Input-Output Analysis 224
Prospects of Success 226
 
9	Policies for Development  227
The Hierarchy of Government Intervention 228
Areas of Intervention 229
Redistribution of Wealth and Income 231
Style of Development 236
Financing Development without InJfation 237
Improving the Mix 243
Foreign Economic Policy 247
Regional Integration 250
Conclusions: The Best System? 256
 
10	Toward a New International Economic Order	265
Beginnings of the New International Economic Order 271
Toward Better Trade Relations 271
Complementary Changes in Advanced Countries 273
Capital Assistance: The New Look 275
Technical Assistance: Closing the Efficiency Gap 276
What is Missing? 278
Prospects for 2010 281
The Chances of Success 283
 
Index 285