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Evolutionary economics gained acceptance for the study of industrialized countries during the 1990s but has, as yet, contributed little to the study of world income inequality. The expert contributors gathered here approach underdevelopment and inequality from different evolutionary perspectives. It is argued that the Schumpeterian processes of 'creative destruction' may take the form of wealth creation in one part of the globe and wealth destruction in another. Case studies explore and analyse the successful 19th century policies that allowed Germany and the United States to catch up with the UK and these are contrasted with two other case studies exploring the deindustrialization and falling real wages in Peru and Mongolia during the 1990s. The case studies and thematic papers together explore, identify and explain the mechanisms which cause economic inequality. Some papers point to why the present form of globalization increases poverty in many Third World nations. Members of the anti-globalization movement will find the explanations given in this book insightful, as will employees of international organizations due to the important policy messages. The theoretical interest within the book will appeal to development economists and evolutionary economists, and policymakers and politicians will find the explanations of the present failure of many small nations in the periphery invaluable.
Edited by Erik S. Reinert, Honorary Professor, UCL Institute for Innovation and Public Purpose (IIPP), University College London, UK and Adjunct Professor of Technology Governance and Development Strategies, TalTech, Estonia
Contents: Introduction Erik S. ReinertPART I: FOUNDATIONS OF AN ALTERNATIVE THEORETICAL PERSPECTIVE 1. The Other Canon: The History of Renaissance Economics Erik S. Reinert and Arno M. Daastøl2. Natural versus Social Sciences: On Understanding in EconomicsWolfgang DrechslerPART II: THE STRATEGY OF SUCCESS: NINETEENTH-CENTURY UNITED STATES AND GERMANY 3. The Views of the German Historical School on the Issue of International Income Distribution Jürgen G. Backhaus4. Technical Progress and Obsolescence of Capital and Skills: Theoretical Foundations of Nineteenth-Century US Industrial and Trade Policy Michael HudsonPART III: THE STRATEGY OF FAILURE: LATE TWENTIETH-CENTURY DEINDUSTRIALIZATION AND THE ECONOMICS OF RETROGRESSION 5. Natural Resources, Industrialization and Fluctuating Standards of Living in Peru, 1950–1997: A Case Study of Activity-Specific Economic Growth Santiago Roca and Luis Simabuko6. Globalization in the Periphery as a Morganthau Plan: The Underdevelopment of Mongolia in the 1990s Erik S. ReinertPART V: TECHNICAL CHANGE AND THE DYNAMICS OF INCOME INEQUALITY 7. Technological Revolutions, Paradigm Shifts and Socio-institutional Change Carlota Perez8. Income Inequality in Changing Techno-economic Paradigms Chris Freeman9. Information Technology in the Learning Economy: Challenges for Developing Countries Dieter Ernst and Bengt-Åke Lundvall10. Diversity: Implications for Income DistributionDavid B. Audretsch11. Convergence, Divergence and the Kuznets CurveÅdne CappelenIndex
'This book offers a very interesting alternative approach to studying the impacts of globalization and would be a useful resource for researchers as well as postgraduate students (and perhaps advanced undergraduate students) of evolutionary economics, economic geography and international trade . It will also be of interest to policy makers and members of international organizations (including the so-called Washington Institutions!).'