1. Dualistic development: the idea that a modern commercial sector developed alongside a traditional subsistence sector, resulting in a dual economy in poor countries. The two sectors differed in terms of the growth process and conditions in labor markets (Lewis 1955; Higgins 1968; Todaro 1971).
2. Mobilizing domestic resources: the idea was to find ways of increasing the savings rate and mobilizing domestic savings (through banks and other financial institutions), making domestic funds available for productive investment in poor countries.
3. Mobilizing foreign resources: however, there might remain a “savings gap” and a “foreign exchange gap,” which could be filled from external sources through public financial aid, loans, private foreign investment, and nonmonetary transfers of managerial and technological knowledge.
4. Industrializationstrategy:industrializationshouldproduce,often in labor-intensive, capital-saving ways, the simple producer and consumer goods required, particularly by rural people.
5. Agricultural strategy: progress in agriculture was thought essential for providing food and raw materials, yielding savings and tax revenues for development elsewhere in an economy, and earning foreign exchange, with farmers forming a market for industrial goods.
6. Trade strategy: development economists were originally divided on whether free trade increased international inequalities or could contribute to the development of primary exporting countries. Increasingly they favored export promotion of semimanufactured and manufactured goods and the “liberalization” of trade regimes (that is, low tariffs).
7. “Human resource” development: the accumulation of material capital was to be paralleled by investment in “human capital”— that is, improving the quality of people as productive agents, changing abilities and skills, even modifying motivations and values (hence, an interaction with modernization theory—see Chapter 4).
8. Projectappraisal:withinvestmentresourcesscarceindeveloping countries, there was a particular need for the rational allocation of capital and thus for development project appraisals by governments and international agencies like the World Bank (Meier 1984).
9. Development planning and policymaking: some development economists voiced criticisms of the market mechanism as ineffective, unreliable, or irrelevant to the problems faced by developing countries. They found a need to supersede markets with state planning.