The key institution to economic growth
Luiz Carlos Bresser-Pereira
Ampla atualização do Texto para Discussão 161/07, "National development strategy: the key growth institution".
Economic growth is almost invariably the outcome of a national development strategy. Effective economic development occurs historically when a nation is strong, and the different social classes are able to cooperate and formulate an effective strategy to promote growth and face international competition. A national development strategy is essentially an institution or a cluster of institutions which stimulates capital accumulation and technical progress. It follows a discussion of the main characteristics that such strategies, first in the central or developed countries, that never faced the colonial condition, and, second, in the developing countries. The paper closes with an analysis of the conflicts or tensions involved in national development strategies.