2.1.2 Theory of Immiserizing Growth
(BHAGWATI2)
This theory follows the argumentation of the theory of circular
deterioration of terms of trade and concludes that countries,
in order to improve their balance of trade, have to increase
their exports to compensate for falling prices. This means
a further deterioration of terms of trade. The unchanged structure
of supply intensifies the structural dependency and, regardless
of growth, there is no development but only 'immiserizing
growth.' This situation is especially pertinent for countries
with agrarian monoculture. As a consequence, BHAGWATI later
asked for a speedy industrialization including heavy industry
for larger countries.
|
