Thus development economics, to a greater extent than traditional neoclassical
economics or even political economy, must be concerned with the
economic, cultural, and political requirements for effecting rapid structural
and institutional transformations of entire societies in a manner that will
most efficiently bring the fruits of economic progress to the broadest segments
of their populations. It must focus on the mechanisms that keep families,
regions, and even entire nations in poverty traps, in which past poverty
causes future poverty, and on the most effective strategies for breaking out
of these traps. Consequently, a larger government role and some degree of
coordinated economic decision making directed toward transforming the
economy are usually viewed as essential components of development economics.
Yet this must somehow be achieved despite the fact that both governments
and markets typically function less well in the developing world.
In recent years, activities of nongovernmental organizations, both national
and international, have grown rapidly and are also receiving increasing attention
(see Chapter 11).
Because of the heterogeneity of the developing world and the complexity
of the development process, development economics must be eclectic, attempting
to combine relevant concepts and theories from traditional economic
analysis with new models and broader multidisciplinary approaches derived
from studying the historical and contemporary development experience of
Africa, Asia, and Latin America. Development economics is a field on the crest
of a breaking wave, with new theories and new data constantly emerging.
These theories and statistics sometimes confirm and sometimes challenge traditional
ways of viewing the world. The ultimate purpose of development
economics, however, remains unchanged: to help us understand developing
economies in order to help improve the material lives of the majority of the
global population.