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Unformatted text preview: Steps to economic development: 1) Open economy a. Free trade (based on comparative advantage) b. Aid from the West c. Encourage investment by MNCs 2) Democracy and free markets 3) Strong central government 4) Public education 5) Socialize to western values 6) Urbanization and industrialization **The solutions are all internal** What is development? Economic development refers to the combined processes of capital accumulation, rising per capita incomes (with consequent falling birthrates), increasing skills in the population, adoption of new technological styles, and other related social and economic changes. (Goldstein, pg. 291) Most important: capital accumulation...
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- Fall '07