New Normative Directions of Socio-Economic Processes

  • K. Dopfer


Until this juncture, our analysis has brought into focus some of the major resource relationships. The account has been descriptive-explanatory, not normative. However, any descriptive-explanatory account also has normative implications. For instance, the theoretical insights revealed by classical-neoclassical theory—an emphasis on the process of capital formation with a concomitant transitional process in a two-sectors context—lends corresponding support to a development strategy which is directed toward increased capital formation in the sectors assumed to be relevant for development, viz. the modern sectors. The theoretical account presented here differs quite significantly from the classical-neoclassical theory. Development differentials have been conceived as a major determinant of the current development processes in Asia. The capital-focused view was abandoned in favour of a comprehensive view integrating the relevant variables of the demand side. Beyond this, the socio-economic processes were viewed in a multi-systems context allowing for complex causal interactions among all (not only socio-economic) variables. Consequently, socioeconomic differentials were viewed as having an impact on the population behaviour, which, in turn, has an impact on the socio-economic differentials.


Political Economy Capital Formation Productivity Effect Employment Effect Causal Interaction 
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© K. Dopfer 1979

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  • K. Dopfer

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