The Development Frontier: Essays in Applied Economics

Peter Bauer draws conclusions about economic development that diverge from the mainstream. "The Development Frontier" illustrates his characteristic and distinctive approach: he bases his analyses on careful and direct observation of conditions in the developing world. In doing so, he takes account of the interplay between conventional economic forces, such as supply and demand, and social and political factors. One of Bauer's central ideas in this book is the crucial importance of traders in the transformation of subsistence and near-subsistence economies into exchange economies. In contrast to the conventional wisdom that traders are parasitical types in comparison with producers, Bauer sees them as encouraging new desires, conveying information about new opportunities, and helping producers to take advantage of these opportunities. Other topics include the structure of internal trade in less developed countries, occupational distribution and economic growth, population growth and development, Third World debt, price and income stabilization, and foreign aid. Peter Bauer presents arresting insights and graphic examples and challenges the reader's preconceptions and attitudes. He changes the way we think about economic growth and development.