ESSAY ON STATE, MARKET AND ECONOMIC DEVELOPMENT: REVISITING SCHUMPETER AND NURKSE

revisitando Schumpeter e Nurkse

Abstract

This article aims to discuss the role of the State in the economic development of nations, based on the theoretical formulations of Schumpeter and Nurkse. The study revisits and develops a theoretical and critical analysis of their interpretations regarding the determinants of economic development. The contribution of this study is the complementary approach it applies to the issue through the lens of Schumpeter and Nurkse. To explain development, Schumpeter theorizes the need for the emergence of innovations capable of generating a wave of national prosperity. However, it is reasonable to say that in an underdeveloped nation, where capital faces obstacles and entrepreneurs have no incentives in investing, we cannot plausibly expect the spontaneous emergence of the Schumpeterian entrepreneur. In this sense, Nurkse offers the State as a solution, capable of driving a massive wave of planned investments, in order to build a national market capable of generating a return on capital, leading developing nations to experience a virtuous wave of growth and economic prosperity.