William Easterly on the Racist and Imperialist Origins of Economic Development

Economist William Easterly has a fascinating post discussing how the idea of economic development originated "as a cover for imperialism and racism." As he writes:

During the early years of World War II, Japan won major victories (such as the capture of Singapore) against the British and threatened India. Japanese propaganda pointed to British racism and offered themselves as the defenders of non-white peoples. The British feared that non-white people in the colonies might side with the Japanese rather than their colonial masters. The British had to come up with a new justification for colonial rule to replace the unpopular and increasingly implausible idea that they were a superior race destined to rule inferior races. In response, they invented the concept of economic development.

Why does this matter today?

First, it meant that the concept of development was determined to fit a propaganda imperative; it was NOT a breakthrough in thought by economists. Second, it followed that development from the beginning would stress the central role of Western aid to help the helpless natives (which shows up in the early development theories like the "poverty trap" and the "Big Push," and the lack of interest in local entrepreneurs and market incentives). Third, the paternalism was so extreme at the beginning that it would last for a long time—I still think it is widespread today, especially after today's comeback of the early development ideas in some parts of the aid system. And this history also seems strangely relevant with today's "humanitarian" nouveau-imperialism to invade and fix "failed states" like Iraq and Afghanistan.

Read the rest here.

[Via The Beacon]