James H. Street

The Institutionalist Theory of Economic Development

The institutionalist theory of the development of newly emerging societies is an extension of the general body of institutionalist theory. It draws upon the same basic conceptions of the nature of human behavior and the process of social change that have characterized the institutionalist interpretation of the evolutionary history of modern advanced industrial economies. Development is conceived as a complex cultural process rather than as a stable system of counterbalancing forces regulated by a fluid and self-adjusting market mechanism. The propelling force for economic growth has been and continues to be the utilization of technological knowledge and instruments. The forces inhibiting social progress, on the contrary, are rooted in institutional (ceremonial) patterns of behavior that are present in all societies, but seem to be particularly obstructive in the cultures of many less economically developed countries. As an extension of general institutionalist theory, contemporary development theory attributes retarded growth in the Third World to the dominant influence of archaic social institutions and the consequent failure to utilize available technical knowledge and skill. The specific form that the interplay of institutional and technological behavior takes in each country or cultural unit is governed by unique circumstances of geography, cultural history, and available resources. While technology has universal adaptability, institutions are culture specific. Each case can be fully understood only by empirical investigation utilizing

In Memoriam: Alfred S. Eichner 1937-1988

(1988). In Memoriam: Alfred S. Eichner 1937-1988. Journal of Economic Issues: Vol. 22, No. 4, pp. 1239-1242.

Technology, Institutions, and Public Policy in the Age of Energy Substitution: The Case of Latin America

The eighteen countries of Latin America have their problem of searching for alternative energy sources compounded by their lack of an advanced technological base. The energy histories of several individual countries are summarized briefly. Mexico, the worlds fourth largest producer of petroleum, has drawn up a National Indicative Plan for Science and Technology that will require massive demands of the nations human and material resources. Details of the Indicative Plan are discussed. The Latin American energy crisis is expected to generate inducements to pursue more-timely solutions to the problems which cannot be solved by the workings of archaic institutions. 12 references.

Closing the Technological Gap in Latin America

The 19 oil-importing countries of Latin America were severely affected by the 1973 oil embargo and price increases, which revealed a widening technological gap that has made stability and economic growth difficult for these countries. Unstable price levels and massive inflation have produced unprecedented balance-of-payments deficits. The areas technological gap leaves it unprepared to produce adequate food supplies or to make major resource substitutions. Internal weaknesses are evident in the educational and research biases of South America that have limited the progress of universities and research institutes. New policies are needed to promote viable science and technology by setting priorities and expanding indigenous research programs. Several case studies of indigenous innovation and adaptation are noted to illustrate the potential for closing the technological gap in a peaceful, constructive way. 44 references.