Ragnar Nurkse (Tallinn, June 5th 1907 - May 6th 1959) is a economist American of origin Estonia nne and considered as one of the pioneers of the economy of the development.

Theory of the vicious circles

He is the promoter of the analysis in term of vicious circles of poverty (Ragnar 1953). Poverty results in an low-income, which does not make it possible to save or save little. The accumulation of the capital which results from it is thus weak, which does not make it possible to increase the productivity and thus the incomes. Nurkse recommends to break the vicious circle a contribution of foreign assets. The tautological character of the theory of the vicious circles will be criticized. Indeed, this theory amounts affirming that the countries are poor because they are poor. Moreover, the weak saving in the poor countries is not observed in reality. Lastly, this theory does not make it possible to explain why the industrialized countries could break the circle of the underdevelopment.

Balanced theory of growth

It is also one of the partisans with Rosenstein-Rodan of the strategy of balanced growth like development policy to leave the Developing country the Sous-développement. For them, the existence of interdependences between sectors and supply and demand requires a homogeneous development of each sector. He is opposed on this topic to Albert O. Hirschman which is in favor of a unbalanced growth.

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