Primary Research and Statistical Analysis

Question: Discuss about the Primary Research and Statistical Analysis. Answer: Introduction: The author presents how the development economic ideas have evolved during the last fifty years with special reference to planning in third world countries of Asia, Africa and Latin America. The planning approach to economic development was immensely popular during the 1950s to 1970s as it was felt that markets cannot perform the developmental functions effectively and also that the third world countries would increasingly become dependent on developed countries. The degree of planning in various nations varied and so did the degree of protectionism offered to selected domestic industries. Further, the proponents of planning were extremely reluctant to currency adjustments as it was widely held that the elasticity to prices for most of these countries would be low. However, with time and underperformance the planning approach paved way to a more open and liberal economic policy which was highly dependent on trade and foreign investment. In the light of above developments, the developed countries have continued to provide foreign aid which formally got established in the cold war era. The intention of this aid was to bring about economic development; however there is intense debate with regards to the precise implementation and effect of the foreign aid in the recipient nations. Methods The given paper relies on literature review as the key mechanism for highlighting the change in development economics over the last five decades with particular reference to the instances of various nations from the developing and underdeveloped world. Further, the alternative viewpoints and findings of the various scholars, researchers, economists and academicians are also presented in a systematic manner with regards to changing economic policies and the impact of foreign aid along with the key role played by agencies like IMF. Contribution The given paper has immense relevance for global policymakers and economists as it highlights the host of viewpoints and experiences with regards to foreign aid assistance being provided. Through this discussion, it emerges that the actual impact and underlying mechanism of ensuring the same is indeed complex and has multiple parameters. Thus, this rejects any simplistic model of providing foreign aid so as to ensure that the desired end result is achieved. Both the donor nations, any institutions involved along with the recipient nation should together forge processes and mechanisms by drawing on existing literature and international experience in this regard. Further the study also indicates that more detailed research and theory building is required in relation to evaluate foreign aid effectiveness takes into factors a plethora of factors as the current simplistic approaches are not sufficient. Additionally, the paper makes a strong case for liberalisation and open economy as against protectionism. Meanwhile, the paper also highlights the underlying evolution of development economics and its precise impact on the nature and form of foreign aid received amidst the increasing role of international agencies. Key Findings One of the findings of the paper is that the planning approach adopted during the 1950s was heavily influenced by the work of various economists and was essentially faced on incorrect premises which led to breeding of inefficiency and inefficiency. As a result, the economic growth in the third world countries was adversely impacted and resulted in the formation of depending relationship with developed nations. Further, with regards to studying the impact of foreign aid a host of factors such as the mechanism of aid extended, time period , the recipient country and thus a general theory with unilateral conclusion must be avoided. Also, typically there are many channels through which the foreign aid impacts the recipient economic and this process is overall complex and must not be subject to generalised theoretical framework and analysis. Critical Review Even though the paper does an impressive job at presenting a systematic view of the evolution of development economics along with the effectiveness of foreign aid, the study has the following shortcomings. No primary research and statistical analysis The given study limits itself to only literature review which is essentially generic and in view of the diverse opinion of the economists does not present any relevant direction to the policymakers and aid agencies. It would have been better if the author would have limited the research to some countries and based on the data obtained through secondary source would have tried to make an inference by indulging in statistical analysis. In this regard, it would have made sense to present the case of certain select nations and based on the analysis of each of these nations, certain parameters be identified which are comparatively more significant. Limited utility for further research The given research does not go a long way in paving way for further research on the topic as it concludes by saying that the given topic requires detective like work since the subject is difficult. This conclusion has been derived in other studies also and it is also known that with regards to utility foreign aid, the empirical evidence is divided which provides only limited conclusions. In this backdrop, it would have been better, if the author could have through research enabled the identification of certain parameters that are considerably more critical and suggested mechanisms from examples of some successful countries. This could have provided an adequate base and limited generalisation which could then have been used to conduct more detailed research on the subject.