ABSTRACT
Paul Baran is one of the earliest writers to have given a political economic explanation of economic backwardness and economic growth. Paul Baran observes that the analysis of development and underdevelopment comes within the jurisdiction of political economy. Economic growth essentially depends on the accumulation of surplus and its proper utilisation. Baran has observed that the main obstacle in the way of economic development in less developed countries (LDCs) is the lack of proper utilisation of surplus. Baran’s analysis of economic backwardness and economic growth has remained very original and incisive. His analysis of potential surplus has encouraged writers to explore the possibilities of self-reliant development and to investigate ways in which the surplus is generated and siphoned off to the rich countries. His analysis has given a new direction for the examination of the links among the domestic class structure, international dependency and capital accumulation.
