Critical Analysis Of Development Economics

The purpose of the article, Development Economics: From Classical to Critical Analysis by Susan Engel, is to explain the chronical development of economics as a sub-discipline. In economics, the neoclassical and the classical economics measure the increases in the domestic income better known as Gross Domestic Product (GDP), the inputs of production are labor, capital and land and the different measures for sectors such as agriculture, manufacture, and service sector. Nevertheless, Marxist and neo-Marxist approached the economy integrating aspects of psychoanalysis focusing on national income. Marxist, neo-Marxist, neo-classical and classical economics are part of the sub-disciplines of economics, each of these disciplines had different methods

Under the influence of Keynes with his general theory, the state proverb the development as a process to create capital, investments, and savings. Through this development, the third world established two sectors; the subsistence sector and urban industrial sector. Consequently, each sector was based on the evolution of their labor productivity. The expansion of these sectors depended on from the progression of the rate of capital accumulated in each sector called modern sector. Instead, Marx ideology of labor was value, he assumed a more holistic analysis system of growth would create a capitalist economy. Max emphasized the necessity on the non-capitalist path to development. Neo-Marxist dependency theory supports the development of the economy.

The development of the dependency theory was created by Andre Frank, he found the developed and underdeveloped were opposite. Frank proposed that there was a chain in exploitation, he analyzed the distinction of between core capitalist and the periphery countries. The purpose of Frank’s theory was to solve the exploitation equally and to each developed and underdeveloped countries to find diverse paths. This entitled to the ideology of Marx, he claimed that nations had a linear development path and the exploitation of people will be the same under any