Economic ideas can matter in various ways to transform or bring down a country’s economy; these ideas often shape reality; but in my opinion, ideas are like seeds of crops that must fall on fertile ground to grow—paying attention to the “political economy” of policy reform can boost and help unveil the fertile ground. In the event that a development economists be it political, social or pure economics are to exercise more influence, there will be no doubt that they will have to achieve greater and coherent understanding of pressing problems that are not easy to fix in comparison to the technical analysis they so proudly perform– more politicized, involve issues of constitutive rationality, and require institutional change. They will then better understand the causes of differences in development performance and how to institute policy reform towards other economies that are so functionally different from what they are used to. Under developed economies in recent years, has been either disregarded or thought of as insignificant contributors to the global economy. These developing economies that is widely known in the business world as emerging markets are gaining traction, third world economies that make up these emerging markets are mostly Africa, Some Asian, and Latin American countries, yet it’s only the (BRIC) economies are mostly viewed as “ideal” business environments for the western world.
Let me refer you to the neoclassical Hecksher-Ohlin-Samuelson (HOS) model, which argues that firms are supposed to compete based on static comparative advantages, and free trade maximizes both national and international welfare. So if many economist embrace this idea, I guess my question will be , isn’t global economies supposed to compete based on comparative and competitive advantages? If that’s the case do these other ignored or left behind economies not have either of these advantages to compete in the global economy? Or do they not understand these concepts well enough to apply it? Or is it the simple fact that, regardless of what natural resources they may have in abundance still does not make those economies suitable enough to investors and countries to enter into trade agreements to foster growth in the so called third world economies?. What do you say?