CRITICAL EVALUATION OF ARTICLE

Critical Evaluation of Article



Critical Evaluation of Article

Introduction

This paper evaluates critically the article named, “On the Mechanics of Economic Development” written by Robert E. Lucas. The part of evaluation will be discussing, Evidence of thought about the research process, Extensive use of relevant literature, comparing of one theoretical approach with one other, Evidence of thought about any causal relationships will get discussed, and Methodological reflection, coherence and awareness.

Economic development in recent decades has been tremendous. Unfortunately, the wealth and prosperity have generated unevenly. This inequality is causing social problems and political instability in almost all regions of the world. The end of the cold war and the rapid integration of the global economy have not resolved the persistent problems of underdevelopment, extreme poverty, indebtedness and trade balances. The United Nations development of peoples is the best way to achieve diplomatic, economic and social security. Furthermore, almost one-sixth of the world's population is illiterate, and more than 1,000 million do not have drinking water. Worldwide there are more than 140 million people unemployed and around 750 million are underemployed ((Lucas, 1988: 7).

It is impartial, since they do not represent to any national or commercial interest in particular and they can develop special relationships of trust with countries and their populations to provide assistance without any conditions It has a global presence, because they have the largest network of offices for the provision of development assistance. The United Nations call for macroeconomic policies to address current imbalances, particularly between North and South increasing inequality, the persistent problems in developing countries and needs without precedents in the countries in transition from a centralized economy a market economy. Programmes of assistance of the United Nations throughout the world promote poverty reduction, child survival, the protection of the environment, the advancement of women and human rights.

Evidence of Thought about the Research Process

This article is based on neoclassical theory of economic growth and international trade, also considers with the relevant features of economic development. There are three models discussed in this article and each of them gets compared and provides supporting evidence. Three models that got discussed in this article are (Lucas, 1988: 3):

A design for the aggregation of the physical capital, along with changes in technology;

A design for the aggregation of the human capital by the process of schooling, and;

A design for the aggregation of human capital specializing in different fields by adopting the process of learning-by-doing.

Literature Review

One of the greatest exponents of this tradition was an Oxford economist, Roy Harrod, who proposed his model in 1939, Keynesian and then in the heyday of the great depression of 1929-32 (Harrod, 1939: 14). He got concerned, therefore, not only to explain why economies grow at rates higher or lower, but also (especially) why capitalist systems could be produced in serious instability. The capitalist economic growth is unstable and in essence that only government intervention, economic policies wisely managed, can mitigate this instability over time and ensure a balanced growth with full ...