ABSTRACT
Neoclassical economists and modernization theorists argue that differences in the rate of development are caused by factors influencing the efficiency of production and distribution. Keynesian economists and liberal social theorists argue that institutional barriers in capitalism prevent lagging regions, industries, and nations from catching-up with developed sectors. Radical political economists and Marxists take a much different stance toward analyzing uneven development. Uneven development is a prominent feature of advanced capitalism, characterized by rapid growth in some sectors and regions and decline in others. Almost all social scientists agree that the banking system is instrumental in facilitating economic growth and development. The financial system is creating and defining the character of economic development. Influence over capital flows becomes an important tool for the state to direct economic development and growth. The chapter also presents an overview of the key concepts discussed in this book.
