Tag: Economic Growth

The Problem of Economic Growth – Part 2

I ended the previous part of this essay with:

The one factor that motivates the vast majority of people is self-interest. Self-interest is not a pathology because it’s a normal and unalterable aspect of human nature. It’s not a bug in human nature but is actually a feature. Indeed, self-interest broadly construed — enlightened self-interest — is what accounts for the advancement of civilization itself. People work hard to better the circumstances of themselves and those they care about, and in doing so advance the greater good even without intending to. This had been recognized two and a half centuries ago by Adam Smith and others.

Moving on —
Continue reading “The Problem of Economic Growth – Part 2”

The Problem of Economic Growth – Part 1

The economic growth of India since 1947 has been disappointingly low. Many countries—such as Hong Kong, South Korea, China—starting with comparable low levels of per capita GDP as India in the 1950s have over the last 75 years or so made phenomenal economic progress. Broadly speaking, those countries escaped poverty primarily because their political leaders were able to formulate and implement policies that promoted growth. In contrast to them, India stagnated. Continue reading “The Problem of Economic Growth – Part 1”

Rating Achievements Through “Rate of Growth”

“. . . how absurd it is to judge relative performance by rate of growth, which is as often as not evidence of past neglect rather than of present achievement. In many respects it is easier and not more difficult for an undeveloped country to grow rapidly once an appropriate framework has been secured.”

Source: F. A Hayek. The Political Order of a Free People. 1979. Page 190. Volume 3 of Law, Legislation and Liberty.