Hostname: page-component-586b7cd67f-r5fsc Total loading time: 0 Render date: 2024-11-22T16:55:33.006Z Has data issue: false hasContentIssue false

Prebisch and Myrdal: development economics in the core and on the periphery

Published online by Cambridge University Press:  23 February 2011

Andrés Rivarola Puntigliano
Affiliation:
Institute of Latin American Studies and Department of Economic History, Stockholm University, SE-10691, Stockholm, Sweden E-mail: andres.rivarola@lai.su.se
Örjan Appelqvist
Affiliation:
International Relations at the Department of Economic History, Stockholm University, SE-10691, Stockholm, Sweden E-mail: orjan.appelqvist@ekohist.su.se

Abstract

The ideas on development issues of two ‘pioneers in development’, Raúl Prebisch and Gunnar Myrdal, are tracked in their formation and evolution. The central role of these two ‘defiant bureaucrats’ in the Economic Commission for Europe (ECE) and the Economic Commission for Latin America (CEPAL) are used to reflect on the interaction between intellectuals and international institutions in different historical contexts. Both men represented a liberal–universal strand in development thinking. Their divergent conclusions and assessments of the role of international institutions are compared, and are related to their different origins in core and periphery. It is argued that such roots influenced two different approaches to development problems within the UN system.

Type
Articles
Copyright
Copyright © Cambridge University Press 2011

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

1 Arrighi, Giovanni, Adam Smith in Beijing: lineages of the 21st century, London: Verso, 2007.Google Scholar

2 Meier, Gerald M. and Seers, Dudley, eds., Pioneers in development, Oxford: Oxford University Press, 1984Google Scholar. For a comprehensive view of the growing importance of regionalism across the world, see Lawson, Fred H., Comparative regionalism, Burlington, VA: Ashgate, 2009Google Scholar.

3 The English acronym is ECLA (Economic Commission for Latin America), but we prefer to use the better known Spanish acronym, CEPAL (Comisión Económica para América Latina).

4 Peter Gowan, ‘US: UN’, New Left Review, 24, November–December 2003, pp. 5–28.

5 Toye, John and Toye, Richard, The UN and global political economy: trade, finance, and development, Bloomington, IN: Indiana University Press, 2004, p. 54Google Scholar.

6 Hall, Peter A. (ed.), The political power of economic ideas: Keynesianism across nations, Princeton, NJ: Princeton University Press, 1989, p. 362Google Scholar.

7 Ibid.

8 Richard Scott and John W. Meyer, ‘The organization of societal sectors: propositions and early evidence’, in Walter W. Powell and Paul J. DiMaggio, eds., The new institutionalism in organizational analysis, Chicago, IL: Chicago University Press, 1991, p. 122.

9 Toye and Toye, UN, p. 13.

10 Hall, Political power, p. 8.

11 Toye and Toye, UN, p. 8.

12 J. Robert Berg, ‘The UN Intellectual History Project: review of a literature’, Global Governance, 12, 2006, p. 335.

13 Joseph Hodara, Prebisch y la CEPAL: sustancia, trayectoria y contexto institucional, Mexico City: El Colegio de Mexico, 1987, p. 13.

14 Gunnar Myrdal, Asian drama, New York: Twentieth Century Fund, 1968.

15 Edgard J. Dosman and David H. Pollock, ‘Raúl Prebisch: the continuing quest’, in Enrique V. Iglesias, ed., The legacy of Raúl Prebisch, Washington, DC: Inter-American Development Bank, 1994, p. 16.

16 Ibid.

17 Ibid, p. 17.

18 Ibid., p. 21.

19 Joseph L. Love, ‘Raúl Prebisch and the origin of the doctrine of unequal exchange’, Latin American Research Review, 15, 13, 1980, p. 47.

20 Dosman and Pollock, ‘Raúl Prebisch’, p. 26.

21 Raúl Prebisch, ‘Five stages in my thinking on development’, in Meier, Gerald M. and Seers, Dudley, eds., Pioneers in development, Oxford: Oxford University Press, 1984, p. 175Google Scholar.

22 Carlos Mallorquín , ‘Raúl Prebisch before the Ice Age’, in Edgard J. Dosman, ed., Raúl Prébisch: power, principles and the ethics of development, Buenos Aires: IDB-INTAL, 2006, p. 68.

23 Love, ‘Raúl Prebisch,’ p. 54. It is perhaps more accurate to say that it was the first time he used the concept in an international setting.

24 Dosman and Pollock, ‘Raúl Prebisch’, p. 28.

25 Mallorquín, ‘Raúl Prebisch’, p. 67.

26 Edgard J. Dosman, ‘Markets and the state in the evolution of the “Prebisch Manifesto”’, CEPAL Review, 75, December 2001, p. 92.

27 Andersson, Stellan and Appelqvist, Örjan, eds., The essential Gunnar Myrdal, New York: New Press, 2005Google Scholar.

28 Hirdman, Yvonne, Alva Myrdal: the passionate mind, Bloomington, IN: Indiana University Press, 2008Google Scholar. This is a seminal work on the intellectual interplay between Gunnar and Alva Myrdal.

29 Myrdal, Vetenskap och politik i nationalekonomien, later published as The political element in the development of economic theory, Cambridge, MA: Harvard University Press, 1954.

30 Myrdal, Gunnar, An American dilemma: the Negro problem and modern democracy, New York: Harper, 1944.Google Scholar

31 G. Myrdal, Varning för fredsoptimism, Stockholm: A. Bonnier, 1944, p. 8.

32 Klaus Misgeld, Die ‘Internationaler Gruppe demokratischer Sozialisten’ in Stockholm 1942–1945: zur sozialistischen Friedensdiskussion während des Zweiten Weltkrieges, Uppsala: Almqvist & Wiksell, 1976.

33 It was during these years that Myrdal met David Owen in Stockholm. Their close friendship was important when Owen, acting as Assistant Secretary-General of the UN, advanced Myrdal’s name as head of ECE.

34 A richly documented account of the beginnings of the ECE is given in Vaclav Kostelecky, The United Nations Economic Commission for Europe: the beginning of a history, Gothenburg: Graphic Systems, AB, 1989.

35 Ibid., p. 99. The interview was conducted in 1978. The diplomatic correspondence on the early recruitment policy is detailed here, on pp. 96–100.

36 Örjan Appelqvist, ‘A hidden duel: Gunnar Myrdal and Dag Hammarskjöld in economics and international politics, 1935–1955’, Stockholm Working Papers in Economic History, 2, 2008.

37 The official name of the Paris conference, later to become the Organization of European Economic Cooperation.

38 Milward, Alan, The reconstruction of western Europe 1945–51, Cambridge: Cambridge University Press, 1987, pp. 69–89Google Scholar.

39 The arguments of the chief actors are discussed in Örjan Appelqvist, ‘Rediscovering uncertainty: early attempts at a pan-European post-war recovery,’ Cold War History, 8, 3, 2008, pp. 327–52.

40 European Central Inland Transport Organization (ECITO), European Coal Organization (ECO), and Emergency Economic Committee for Europe (EECE).

41 The Cocom was the ‘Coordination Committee’, a semi-official coordination between the US State Department and government officials in Western countries, establishing a list of products considered to be of military significance.

42 Gunnar Adler-Karlsson, Western economic warfare 1947–1967: a case study in foreign economic policy, Stockholm: Almqvist & Wiksell, 1968.

43 Quoted in Le Monde, 3 May 1954.

44 Milward, Reconstruction, p. 84.

45 This issue is dealt with in detail in Appelqvist, ‘A hidden duel’.

46 Archives of Labour Movement, Stockholm, Sweden, Archives of Gunnar and Alva Myrdal, vol. 6.1.009.23.1.2.34, Hammarskjöld to Myrdal, personal and confidential, 10 August 1954.

47 David Pollock, Daniel Kerner, and Joseph H. Love, ‘Raúl Prebisch on ECLAC’s achievements and deficiencies: an unpublished interview’, CEPAL Review, 75, December 2001, p. 10.

48 Dosman, ‘Markets’, p. 94.

49 Dosman, Edgar J., The life and times of Raúl Prebisch, 1901–1986, Montreal: McGill-Queen’s University Press, 2008, p. 238Google Scholar.

50 Dosman, ‘Markets’, p. 95.

51 Ibid., pp. 95–6.

52 Raúl Prebisch, The economic development of Latin America and its principal problems, New York: United Nations, 1950.

53 Pollock, Kerner, and Love, ‘Raúl Prebisch’, p. 11.

54 Toye and Toye, UN, p. 116.

55 Singer was a researcher at the UN’s Department of Economic Affairs and an alter ego of Prebisch in the elaboration of the terms of trade thesis. He was influenced by the Swedish economist Folke Hilgerdt, who ‘first mentioned this long-term data source to me and expressed puzzlement about its behavior’. See Hans Singer, ‘Comments on “Raúl Prebisch: the continuing quest”’, in Iglesias, Legacy, p. 48.

56 Toye and Toye, UN, p. 87.

57 Ibid., p. 66.

58 The first one was the ECE’s, published in April 1948.

59 Regarding the connection between Prebisch and Manoilescu, see Love, ‘Raúl Prebisch’, p. 62.

60 Andrés Rivarola Puntigliano, ‘De CEPAL a ALALC: tres vertientes del pensamiento regionalista en Latinoamérica’, unpublished paper for 53rd International Conference of Americanists, Mexico City, 18–24 July 2009.

61 Pollock, Kerner, and Love, ‘Raúl Prebisch’, p. 54.

62 Hodara, Prebisch, p. 38.

63 Mallorquín, ‘Raúl Prebisch’, p. 68.

64 Myrdal, Gunnar, An international economy: problems and prospects, New York: Harper, 1956Google Scholar.

65 Ibid., p. 222.

66 Ibid., p. 223.

67 Ibid., p. 228.

68 Ibid., p. 319.

69 Myrdal, Gunnar, Economic theory and under-developed regions, London: Duckworth, 1957Google Scholar (published in the US as Rich lands and poor, New York: Harper & Row, 1957.

70 Ibid., p. 157

71 Ibid., p. 24.

72 Ibid., p. 26. There is an explicit reference to Ingvar Svennilson, Growth and stagnation in the European economy, Geneva: UNECE, 1954.

73 Ibid., p. 159.

74 Ibid., p. 162.

75 Toye and Toye, UN, p. 187.

76 This contributed to the creation of the Latin American Free trade Association (LAFTA).

77 Toye and Toye, UN, p. 212.

78 Pollock, Kerner, and Love, ‘Raúl Prebisch’, p. 38.

79 Ibid., p. 39.

80 Dosman, Life and times, p. 429.

81 Pollock, Kerner, and Love, ‘Raúl Prebisch’, p. 42.

82 The history of UNCTAD 1964–1984, New York: United Nations, 1984.

83 Pollock, Kerner, and Love, ‘Raúl Prebisch’, p. 569.

84 Gunnar Myrdal, The challenge of world poverty, London: Allen Lane, 1970.

85 Ibid., p. 309.

86 As noted earlier, this structural aspect was always a weak link in Myrdal’s analysis. The dichotomies that he used (rich/poor countries, advanced/backward, developed/underdeveloped) glossed over the structural link between the different development processes.

87 Myrdal, Challenge, p. 368.

88 Ibid., pp. 337, 342.

89 Gunnar Myrdal, ‘Increasing inter-dependence between states but failure of international cooperation’, Felix Neuberg Lecture 1977, quoted in Andersson and Appelqvist, Essential Gunnar Myrdal, pp. 194–200.

90 Gunnar Myrdal, ‘The need for reforms in under-developed countries’, in Peace studies, Seoul: Kyung Hee University Press, 1981, quoted in Andersson and Appelqvist, Essential Gunnar Myrdal, p. 210.

91 Myrdal, Gunnar, Economic theory and underdeveloped regions, New York: Harper, 1971, p. 104Google Scholar.

92 Ricardo Bielschowsky, ed., Cinqüenta anos de pensamento na CEPAL, Rio de Janeiro: Cofecon, 2000, p. 48.

93 UNCTAD: tenth anniversary journal, New York: United Nations, 1974, p. 8.

94 Raúl Prebisch, Capitalismo periférico: crisis y transformación, Mexico City: Fondo de Cultura Económica, 1981.

95 Raúl Prebisch, ‘A critique of peripheral capitalism’, CEPAL Review, 1976, pp. 24–5.

96 Raúl Prebisch, ‘Five stages’, p. 184.

97 Raúl Prebisch, La crisis del desarrollo argentino: de la frustración al crecimiento vigoroso, Buenos Aires: El Ateneo, 1986, p. 49.

98 Alice H. Amsden, ‘Import substitution in high-tech industries: Prebisch lives in Asia!’, CEPAL Review, 82, 2004, pp. 75–89.

99 Dosman, Life and times, p. 479.

100 Prebisch, Capitalismo periférico.

101 Quoted in Dosman, Life and times, p. 488.

102 Wallerstein, Immanuel, Geopolitics and geoculture: essays on the changing world-system, Cambridge: Cambridge University Press, 1991, p. 216Google Scholar.

103 Pollock, ‘Raúl Prebisch’, p. 18.