ABSTRACT
Development theory as it evolved in the aftermath of World War II involved several very different (and even opposing) views. For example, Rosenstein-Rodan emphasized the crucial role of the State, Hirschman focused on backward linkages and Myrdal stressed the importance of circular causation processes. 1 In spite of their differences, these authors shared the view that development is a process of structural rupture that involves active State intervention and instability. Keynes’s work on the relation between unemployment and aggregate demand greatly influenced, directly and indirectly, development theory. 2
