A constant shift in theory to accelerate economic growth

- Atapata of Arthakarana-Dhawal Mehta

- A separate field of study of economic development emerged after the Second World War

Many theories have been formulated to achieve or accelerate economic growth. Capitalist-dominant countries say that to achieve or accelerate economic development, markets should be given full freedom and the state should only maintain law and order. If the government interferes with the self-regulation of the markets, economic development will be stunted. America, Britain and other Europeans have progressed under the ideology of marketism. Prof. University of Chicago. Milton Friedman was a big proponent of the free market. On the other hand, countries with communist economics and politics like China and Russia claim that government and government enterprises, not free markets, can achieve rapid economic growth. E.g. After the October Revolution of 1917, Soviet Russia made rapid economic progress. He put the idea of ​​five-year plans at the heart of a centralized economy, democracy is only a plaything of the rich and capitalists under which the capitalist countries established colonies in the world and exploited these colonies terribly. Collazanism was the highest and most creative form of capitalism. A compromise between capitalist and communist economics led to the creation of a socialist economy that perpetuated capitalism but created enormous state enterprises and favored government enterprises over private enterprise. But the term socialist has become so loose that every party considers itself socialist directly or indirectly and here socialist state has become welfare states which do not let people die of hunger, pay unemployment benefits and health services too. Even though welfare states provide free or very low cost, income and wealth inequality persists.

After the end of World War II in 1945, a separate field of study of economic development emerged in economics. A new class emerged called development economists. At the beginning of this new class, the main speaker Prof. Arthur Lewis was. He emphasized on developing the inexhaustible labor supply of economically underdeveloped countries for economic development while two economists named Herod-Domar created the Herod Domar Model of Economic Development which talked about how much investment (capital formation) is required for full employment in an underdeveloped country. However, he talked about how his model of maximum economic development is in industrially advanced countries. Then in 1957, Robert Solow (who won the Nobel Prize in Economics) laid emphasis on the development of modern technology to accelerate economic growth, followed by WW Rostov's discovery of stages of economic growth. At the same time, an economist named Ragnar Nursk took up the discussion of how the vicious cycle of poverty is created in poor countries, while an economist named Rosenstein Roden talked about balanced economic development (Balanced Growth), a German economist named Suiter said that if the economy wants to advance rapidly, the best solution for it is new There are new discoveries. He emphasized on innovations in economics and created a creative paradox concept called Disruption to make economic development faster and fairer as new inventions disrupt old markets, Marxist theory and Prostherian revolution alone would lead society to economic equality and prosperity. Requires extensive discussion.