The economics and the political economy of backwardness and catch up: Notes on the Estrategy of economic development

The work of Hirschman (1958) is a forerunner of an important branch of the new theory of economic growth and development. Indeed, its economic theory is based on the importance of some technical linkages between production activities, and hence is based on no walrasian hypothesis related to externalities, economies of scale and imperfect competition. From his theory arises its recommendation of a state pro-industrialist and interventionist to lead the national economic development and to catch up with the most advanced economies. In comparing two cases of industrialization and state intervention in the economy (South Korea and Colombia) it appears that the subject matters of Political Economy are as important as those of economic theory.