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Neoclassical Economics and Development: A critical review of the convergence hypothesis

Nouri, Heidar LU (2013) STVK02 20131
Department of Political Science
Human Rights Studies
Abstract (Swedish)
This paper aims to critically review scientific purports by neoclassical economics, in particular when it comes to international development politics. Strive for global unified economies conceptualized through the convergence theorem and its extensional implementation through Washington consensus is the main goal of liberal ideology. Moreover market friendly reforms and policies are promoted and practically imposed by transnational institution such as IMF and World Bank on the host countries. This paper adheres to the postmodern critical methodology since it aims to illustrate the prevalent epistemological structures and their shortages. Reviewing the convergence literature I find three overall perspectives that constitute layers of this... (More)
This paper aims to critically review scientific purports by neoclassical economics, in particular when it comes to international development politics. Strive for global unified economies conceptualized through the convergence theorem and its extensional implementation through Washington consensus is the main goal of liberal ideology. Moreover market friendly reforms and policies are promoted and practically imposed by transnational institution such as IMF and World Bank on the host countries. This paper adheres to the postmodern critical methodology since it aims to illustrate the prevalent epistemological structures and their shortages. Reviewing the convergence literature I find three overall perspectives that constitute layers of this vision. First of all is positive economics thus possibility of value-free knowledge acquisition through empirical accumulation and reductionism as well as rationalization. Second is the narrow definition of concept of development in a pure economic sense. Third is the flawed view that Washington consensus policies are the cause of convergence in international markets rather than its reason. Furthermore the ideological undertones represented by assumptions leaning toward individualism and market are downplayed in order to enhance the superior scientific aspect. Even if the ideological weight of assumptions is neglected, the trends neoclassical economics has generated are discussed in ideological terms especially by Marxist camp, for instance commodity fetishism. Therefore I find an ideological treatment of the issue is inevitable. (Less)
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author
Nouri, Heidar LU
supervisor
organization
course
STVK02 20131
year
type
M2 - Bachelor Degree
subject
keywords
convergence, Washington consensus, development, postmodern critic, neoclassical economics, neo-liberalism
language
English
id
3787725
date added to LUP
2013-07-01 12:59:52
date last changed
2014-09-04 08:27:35
@misc{3787725,
  abstract     = {This paper aims to critically review scientific purports by neoclassical economics, in particular when it comes to international development politics. Strive for global unified economies conceptualized through the convergence theorem and its extensional implementation through Washington consensus is the main goal of liberal ideology. Moreover market friendly reforms and policies are promoted and practically imposed by transnational institution such as IMF and World Bank on the host countries. This paper adheres to the postmodern critical methodology since it aims to illustrate the prevalent epistemological structures and their shortages. Reviewing the convergence literature I find three overall perspectives that constitute layers of this vision. First of all is positive economics thus possibility of value-free knowledge acquisition through empirical accumulation and reductionism as well as rationalization. Second is the narrow definition of concept of development in a pure economic sense. Third is the flawed view that Washington consensus policies are the cause of convergence in international markets rather than its reason. Furthermore the ideological undertones represented by assumptions leaning toward individualism and market are downplayed in order to enhance the superior scientific aspect. Even if the ideological weight of assumptions is neglected, the trends neoclassical economics has generated are discussed in ideological terms especially by Marxist camp, for instance commodity fetishism. Therefore I find an ideological treatment of the issue is inevitable.},
  author       = {Nouri, Heidar},
  keyword      = {convergence,Washington consensus,development,postmodern critic,neoclassical economics,neo-liberalism},
  language     = {eng},
  note         = {Student Paper},
  title        = {Neoclassical Economics and Development: A critical review of the convergence hypothesis},
  year         = {2013},
}