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Resilience to economic shrinking as a development strategy for the 21st century

Dates:21 November 2023
Times:16:00 - 17:30
What is it:Lecture
Organiser:Global Development Institute
Who is it for:University staff, External researchers, Adults, Alumni, General public
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  • By Global Development Institute

Dr. Martin Andersson and Dr. Tobias Axelsson from Lund University will present their work on “Resilience to economic shrinking as a development strategy for the 21st century” and their ongoing project on the topic.

Despite divergent views on best policy practice the principal explanation to why low-income countries struggle to catch up is uniform; the developing world has largely seen no or negligible growth over most part of the last seventy years. Economic theory and development policy alike have therefore argued for measures to increase growth. We take issue with this perspective. Empirical evidence shows that developing countries do not lack the ability to grow. The problem is rather that years of high growth is more often than not replaced with periods of shrinking. What is missing, both in academia and in policy circles, is an empirical analysis of how development policy can efficiently build resilience to economic shrinking. We propose a social capability framework to guide our thinking of how to address this gap. In the talk we will focus on how a country’s institutional setting and economic complexity influences its social capabilities in order to create resilience. We will give both a broad overview and dive into a number of pertinent cases.

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