Problems of Financing Development Management: A Kaleckian Analysis

Abstract

Developing countries often suffer from problems of jobless growth and exclusion. In response, the governments of these countries implement a variety of development-management pro grams. However, we identify certain crucial macroeconomic inconsistencies that may arise from such initiatives. Given this, our basic proposition is that, while undertaking these programs, gov ernments should consider the inherent demand- and (especially) supply-side capacities of the macroeconomy and the probable contradictions arising (chiefly) out of the supply constraints. Furthermore, governments should complement these development-management projects with other policy measures, so that such contradictions could at least be partially mitigated. Essentially, contrary to the misplaced orthodox opposition, we are proposing a Kaleckian critique of development management and simultaneously presenting some ways out.