Book: Economic Integration, a Comparative Analysis

May 7, 1992 by · Leave a Comment
Filed under: Articles, Books 

The Islamic Development Bank, and Trade Among Muslim Countries.


Nidal Sakr


While development economists can not agree on a universal definition to economic development, there seems to be an agreement on at least one element in that definition.  That is development is the process whereby output, or more precisely, the real per capita income is increased, provided that the number of people under poverty line does not increase and that income distribution does not become more unequal[1].  Economic development theories, and economic theories for that matter, are centered on maximizing output at the lowest costs possible.  The concept of economic efficiency in production is interpreted as a relation between the physical volume of production and the cost of production.  In most of the western text books, economic analysis is limited to searching on the physical variables that are related to the production process.  In neoclassical economics, little or no consideration is given to the continuous interaction between economics and the society that economics is projected to deal with, especially in development.  Furthermore, the issue whether economics is a strictly theoretical discipline or a human and social science that deals with the factual realities of human societies, is still debated in many western text books.  The terms “normative analysis” and “positive analysis” are used in some economic dictionaries to describe this ongoing debate[2].

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