Development and Social Goals: Balancing aid and development to prevent ‘welfare colonialism’ Erik S. Reinert

The Millennium Goals are far too much biased towards palliative economics rather than structural change, towards treating the symptoms of poverty rather than its causes.  An alternative perspective for cohesive development emerging from the historical and evolutionary approach recommends increasing diversification away from the diminishing returns sectors (traditional raw materials and agriculture) into an increasing returns sector (technology intensive manufacturing) and a  creating a large division of labour and the synergies and social structures which emerge from this structure. welfare_colonialism (Download the full text in PDF format)

Increasing Poverty in a Globalised World: Marshall plans and morgenthau plans as mechanisms of polarisation of world incomes Erik S. Reinert

The increasingly globalised economy seems to produce opposite effects of what standard economic theory predicts. Instead of a convergence of world income (towards factor-price equalisation), a group of rich nations show a tendency to converge, another convergence group of poor countries gathers at the bottom of the scale. This paper explains the mechanisms and the economic policies that create this type of gap in the living standard of workers in the non-tradable service sector. globalised_world (Download the full text in PDF format)