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BSA+104 Week+3+-+Ideas+and+Theories+of+Development+ (Revised)
BSA+104 Week+3+-+Ideas+and+Theories+of+Development+ (Revised)
Progress comes from the proper implementation of good ideas or theories. The highly
developed countries encourage their peoples to produce fruitful ideas - and they are well-paid
for such ideas. Unfortunately, in our own country, good ideas are ignored by the government.
Hence, Filipino scientists offer their inventions to foreigners who are willing to pay them well.
Foreigners develop said inventions into commercial purposes.
During the ancient times, economic ideas were based on the Holy Scriptures and code of
laws. Justice, mercy and charity were further propagated by the Church scholars during the
medieval times. However, with the growth of trade, the accumulation of wealth has become
important. To the mercantilists, wealth came from favorable foreign trade. To the Physiocrats
who believed in the rule of nature, wealth emanated from the land. On the other hand, Adam
Smith, the leader of the classical economists, claimed that real wealth could be created through
industrial production. However, there were those who disagreed with the classical economic
ideas, like Friedrich List, a German professor of economics. He said that the progress of a nation
is great not in proportion to the accumulation of wealth, but in proportion to the development
of productive resources such as natural resources, science, arts, government laws, education,
peace and order, morality, and the harmonious relationship of the various industries and
occupations.
A leading theory in economic development is the innovation theory. The author, Joseph
Schumpeter, has stressed the role of the innovator as the key to economic development. The
innovator is the leader or entrepreneur who has the vision and courage to handle old system
and be able to transform theory into practice.