Developing Countries in the Turbulence of the World Economy: A Difficult Quest to Find a Theory

Abstract

The essay deals with the development of theory in development economics
as a subdiscipline of international economics, within the context of general
economic theory. Although some authors believe that it started to develop
during the 19th century (as some Latin American countries gained their
independence at this time), most authors connect its origin with the
decolonization process of the 1950s. The first part describes its rather
"naďve" beginnings, when it was believed that it is possible to discover a
universal theory applicable to the whole "third world" - such as theories of
vicious circles of poverty, the best ways and tools for breaking them, etc.
The second phase of development economics, spanning approximately
1970-1990, was characterized by disillusionment and produced a lot of
mostly analytical works dealing with partial problems. The third stage (1990
- present) has been characterized by a growing demand for the so-called
new synthesis. As the authors believe, such a goal would be very difficult to
achieve, but in essence, it is achievable by means of joint efforts based on
the Millennium Development Goals, changes of international economic and
political relations systems and changes in a wide range of global issues.