A theoretical framework for new developmentalism
This chapter presents a theoretical framework for structuralist development macroeconomics. The global financial crisis of 2008 made clear the failure of neoliberalism even to the rich countries. It is therefore not reasonable to separate macroeconomics from the theory of economic development. Economic development therefore depends on exports. From the perspective of structuralist development macroeconomics, the potential long-term growth rate of real output is given by the investment rate or the rate of increase in the stock of capital, given the productivity of capital or the output-capital ratio. Structuralist development theory emerged at the moment when the Keynesian thinking became dominant throughout the world, in such a way that structuralist economists had no doubts about the importance of demand for economic development. The abundance of natural resources can, however, act as a barrier to economic development to the extent that Ricardian rents resulting from the exploitation of these resources result in a permanent overvaluation of the exchange rate.