The aim of this paper is to give a rightful place to Myrdal's theory of cumulative causation (CC theory) both in his own economics and in the history of economic. Circular cumulative causation is a theory developed by Swedish economist Gunnar Myrdal in the year It is a multi-causal approach where the core variables and their linkages are delineated. The idea behind it is that a change in one form of an institution will lead to successive changes in other institutions. In this work Myrdal presented his theory of cumulative causation—that is, of poverty creating poverty. In his writings on developmental economics, Myrdal warned that economic development of rich and poor countries might never converge.


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The change does not occur all at once as that would lead to chaos, rather the changes occur gradually.

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Myrdal concentrated on the social provisioning aspect of development, while Kaldor concentrated on demand-supply relationships to the manufacturing sector. Dynamics[ edit ] In the characteristics that are myrdal theory to the development process of an economy Myrdal mentioned the availability of natural resources, myrdal theory historical traditions of production activity, national cohesion, religions and ideologies, economic, social and political leadership.

Gunnar Myrdal | Swedish economist and sociologist |

Myrdal stated that the immediate effect of closing down certain lines of production in a community is the reduction of employment, income and myrdal theory. Through the analysis of the multiplier he pointed out that other sectors of the economy are also affected.

Then he argued that the contraction of the markets in that area tends to have a depressing effect on new investments, which in turn causes a further reduction myrdal theory income and demand and, if nothing happens to modify the trend, there is a net movement of enterprises and workers towards other myrdal theory.

Among the further results of these events, fewer local taxes are collected in a time when more social services is required and a vicious downward cumulative cycle is started and a trend towards a lower level of development will be further reinforced. A status of non-equilibrium is shaped, or as he writes: What is wrong with the stable equilibrium assumption as applied to social reality is the very idea that a social process follows a direction — though it might move towards it in a circuitous way — towards a position which in some sense or other can be described as a state of equilibrium between forces.

Behind this idea is another and still more basic assumption, namely that a change will regularly call forth a reaction in the system in the form of changes which on the whole go in the opposite myrdal theory to the first change.

Circular cumulative causation - Wikipedia

He also was professor myrdal theory political economy —50 and of international economy —67 at Stockholm University; in he became professor emeritus. Until the early s Myrdal emphasized pure theory, in sharp contrast to myrdal theory later concern with applied economics and social problems.


In his doctoral myrdal theory he had examined the role of expectations in price formation, an approach stemming from the work of Frank H. He applied this theoretical approach to macroeconomics in when, as a member of the Stockholm school of economics, he delivered the lectures resulting in Monetary Myrdal theory These lectures illustrated the distinction between ex ante or planned and ex post or realized savings and investment.

At the invitation of the Carnegie Corporation, Myrdal theory explored the social and economic problems of African Americans in —40 and wrote An American Dilemma: The Negro Problem and Modern Democracy In this work Myrdal presented his theory of cumulative causation—that is, of poverty creating myrdal theory.

In Asian Drama, Myrdal predicted that land reform and pacification would fail in Vietnam and urged the United States to begin negotiations with North Vietnam.

Circular cumulative causation

myrdal theory War Crimes in Indochina. He also presided over the Stockholm International Peace Research Institutean international watch-dog for the arms trade.


He shared the Bank of Sweden Prize in Economic Sciences otherwise known as the Myrdal theory Memorial Prize in Economics with Friedrich Hayek in[17] but argued for its abolition because it had been given to such "reactionaries" as Hayek and Milton Friedman.

Myrdal theory was hospitalized for two months before he died in a hospital in Danderydnear Stockholmon 17 May Through the introduction to "Asian Drama" with the title "The Beam in our Eyes" a biblical reference; cf.

Gunnar Myrdal - Wikipedia

This behavioral approach is narrowly connected to behavioralism and is built on the idea that the logical gulf between "is" myrdal theory "ought" is more sophisticated myrdal theory just dividing premises into categories. The articles edited in "Value in Social Theory" underlines Myrdal's importance to political science.

As political science normally is considered more descriptive than economics, one might get the idea that Myrdal should not have dealt systematically with the values applied to economics. On the contrary, Myrdal connected social sciencepolitical science and economics as a practitioner.


Myrdal published many notable works, both before and after American Dilemma and, among many other contributions to social and public policy, founded and chaired the Stockholm Myrdal theory Peace Research Institute. Internationally revered as a father-figure of social policyhe contributed to social myrdal theory thinking throughout the world, in collaboration with friends and colleagues in the political and academic arenas.

Myrdal's theoretical key concept "circular cumulative causation" contributed to the development of modern Non-equilibrium economics. At the Cold War time, In Beyond the welfare state he wrote, he proposed idea of welfare world to break the limitation of the West welfare state.