Professor Eric Renard's Lecture on Economic Development

Introduction

• Speaker: Professor Eric Renard
• Background: Experience in economic development began at age 18 with a student project in Peru.
• Focus of Lecture: Economic history, history of economic thought, and history of economic policy.
• Lecture Structure: Overview of theories of economic development, neoliberalism, and historical perspectives on economic policies.

Key Themes

Economic Development Origins

• Personal Experience in Peru: Scandinavian student project to build schools.
• Question of Inequality: Why equally efficient workers in different countries have vastly different incomes?

Theoretical Overview

• Economic History vs. Economic Policy History: Exploration of how historical policies differ from economic theories.
• Neoliberalism Critique: Markets believed to create spontaneous order, but leading to chaos instead.
• Rodrik's Paper: Critique of development via services industry.

Historical Context

Industrialization and Free Trade

• Infant Industry Protection: Historical necessity for countries to industrialize.
• Free Trade Debate: Contradictions in historical adherence and rejection.
• Historical Examples: Australia and New Zealand's economic policies.

Economic Policies Through Time

• Marshall Plan Impact: Industrialization to prevent communism post-WWII.
• German-US Economic Collaboration: Historical ties influencing economic thought.
• Cold War Influence: Economic ideologies shaped by geopolitical tensions.

Global Economic Shifts

20th Century Developments

• Trade Theories: Labor Theory of Value by Ricardo and its historical fluctuations in popularity.
• Comparative Advantage: Critique and decline in emphasis in recent decades.

Economic Crisis and Globalization

• Origins of Crisis: Starting in the Third World due to fragile economic structures.
• Global Patterns: Crisis spreading from Third World to Second and First World.
• Case Studies: Peru and Russia's economic transformations and policy impacts.

Policy and Economic Structure

Agricultural vs. Industrial Economies

• Diminishing Returns: Challenges in agriculture leading to economic instability.
• Role of Manufacturing: Essential for sustained national wealth and development.

Development Aid and Global Economy

• Welfare Colonialism: Effects of external aid on low-income countries.
• Middle vs. Low-Income Countries: Reasons for persistent economic disparity.

Historical Economic Systems

Early Economic Structures

• Reciprocity and Barter: Pre-capitalist economies based on mutual exchange and equivalence.
• Ecological Niches: Adaptation to geographical and climatic conditions for sustenance.
• Migration and Trade: Seasonal and ecological migrations influencing economic practices.

Economic Evolution

• Stages of Development: From hunting and fishing to pastoral, agricultural, and industrial societies.
• Global Economy Transition: Changes in distribution mechanisms and economic integration.

Conclusion

• Future Lectures: Further exploration into economic structures and policy impacts in upcoming sessions.
• Slides Available: Detailed slides to be shared for further study and reference.