Keynes, Russia and the State in Developing Countries

Abstract

The question of whether Keynes’s economics is relevant to economic policy-making in developing countries has produced answers which cover a remarkable range, in both tone and content. Detractors of Keynes claim that he contributed nothing to development policy, but at the same time that he exercised a very baleful posthumous influence on the actual policy choices of developing countries. This was the view articulated by Harry G. Johnson in the 1970s, as part of a wider counterrevolution against Keynes and Keynesianism. Admirers of Keynes also tend to stress the limits of the relevance to developing countries of Keynesian economics, but find a broader relevance of a positive kind. For example, Singer (in Thirlwall, 1987) argues that

relevant aspects [of Keynes’s teaching] are often related to [his] overall philosophy and methodology rather than to the details of his prescriptions; [and] … the relevance of Keynes is particularly strong in the international field … as distinct from the domestic Keynes of the General Theory.

The author would like to thank Alec Cairncross, Geoff Harcourt, Michael Lipton, Alec Nove, Hans Singer, Frances and Michael Stewart, and Tony Thirlwall for their comments on the first draft of this article. The usual disclaimer applies. He also acknowledges the intellectual stimulus given by Lord Skidelsky’s lecture on ‘Keynes and Russia’ at Charleston Farm, Sussex in May, 1990 and by the Keynes Seminar at the University of Kent in November, 1991. Unpublished writings of J. M. Keynes’ copyright the Provost and Fellows of King’s College, Cambridge. Valuable assistance was received from the Modern Archivist of King’s College, Ms Jackie Cox.