A new economic model: Amartya Sen's 'Development as Freedom'
- Presentation of the country
- Legal Risks
- Political risks
- Cultural risks
- Financial risks
- To Resume Ecuadorian's risks
- Form of Internal Business to be used to enter the foreign market
Until the late 1950s, development was equated with economic growth, i.e, by measuring the increase in income per capita. Thus, the underdeveloped economies were characterized by "an inability to produce sufficient income" (Encyclopedia Universalis). The development pattern of these countries had to go through a number of predetermined stages, based on the model of Western countries.
Among others, the underdeveloped countries needed to catch up technologically, industrially and scientifically, for example, by increasing the investment rate. This understanding of development as economic growth has been the subject of criticism, showing that this restrictive view does not account for structural changes in terms of wealth generation as well as in terms of revenues. This criticism widened the concept of development to all economic sectors, including agriculture, manufacturing, financial markets and institutions. Development is then understood as an irreversible process (except destruction of human and physical capital) which is opposed to a stationary situation where the accumulation of social wealth in the long term would be null.
Thus, during the first half of the 20th century, the development process was mostly regarded as a quantitative process of increase in wealth. This stance raised relevant questions, especially about the purposes of development. Since the increase of wealth is facilitated by a "sustained accumulation of productive capital," the human factor must be taken into account. Thus, in the late 1960s, 'development' was redefined as a process that guaranteed improved human living conditions with increase in income. The intervention of the quality of life in the consideration of development raises questions about the link between development and justice.
The question is whether development benefits everyone equally if the revenues from this development are divided equally between men. A number of economists have focused on these issues of justice in development, whether in terms of distributive justice or aggregative justice. Among them, an Indian economist, Amartya Sen, has thrown a new light on these two concepts which today seem deeply complementary: justice and development. Amartya Sen was born in 1933, in what is now Bengal. During his education in India and Great Britain, he was influenced by various topics, which one can perceive in his theories and books.
He was aware and took great interest in cultural diversity in the world. His field of study quickly became the economy, and it was during his studies that the various areas he studied in his various books became his interests. He became interested in economic well-being, the economy of poverty and inequality, as well as the social choice theory. However, he not only studied economics. Yes, and it shows in his works that Amartya Sen has also studied philosophy: logic and epistemology, as well as moral and political philosophy. He quickly became a professor, and taught in numerous prestigious universities. It is also important to note that he taught with people like Arrow. In 1998 he received the Nobel Prize in Economics for his contribution to social choice theory in particular. Thus Amartya Sen has been, throughout his life, interested in areas such as development, justice and freedom, by his studies in economics and philosophy.
Tags: Amartya Sen, political philosophy, Nobel Prize in Economics