Growth and Development Policy

This chapter is concerned with policies for growth and development. An important issue is whether these policies should be different in a “new economy” than they have been in the past. We outline the policy approaches to growth. We consider the dispute between economists who argue that government has played an important role in fostering growth and development and those who believe primarily in market mechanisms. We consider the role of other participants in the development process, the function of financial markets, domestic enterprise and foreign investors.