Introduction to the World Economy
Philip Leatherwood, Lecturer
Kazakhstan Institute of Management, Economics, and Strategic Planning
21 March, 2001
On Development and Aid
I. Rising Expectations Must Be Postponed
Hoover insists that, "withholding income from consumption," is necessary to the process of capital accumulation.
1.Why is capital accumulation desirable?
2. Generally, why is "withholding income from consumption" difficult?
3. Do you think these arguments are applicable to Kazakhstan's present and future development?
II. An Alternative to Aid
"Because our foreign aid involves giving money from our government to another government, this strengthens the other government at the expense of the private sector."
1. What would Friedman think about the company Air Kazakhstan?
2. Explain why it is important that "a private plant can go broke and government enterprises are very unlikely to go broke."
3. Do you think these arguments are applicable to Kazakhstan's present and future development?
For next time: "The Inexorable System of Karl Marx"