Economic Complexity and Human Development: How Economic Diversification and Social Networks Affect Human Agency and Welfare

Description

This book combines the human development approach and innovation economics in order to explore the effects that structural economic change has on human development. While economic diversification can provide valuable new social choices and capabilities, it also tends to lead to more complex decision processes and changes to the set of capabilities required by people to self-determine their future. Within this process of structural transformation, social networks are crucial for accessing information and social support, but networks can also be a root cause of exclusion and inequality reproduction. This implies the need to encourage innovation and economic diversification beyond production expansion, focusing on the promotion of human agency and social inclusion. This book provides such a modern perspective on development economics, emphasizing the role of social networks, economic diversity and entrepreneurship for social welfare. The author discusses how innovation, social networks, economic dynamics and human development are interlinked, and provides several practical examples of social and micro-entrepreneurship in contexts as diverse as Peruvian rural villages and Brazil’s urban areas. The interdisciplinary perspective put forward in this book illustrates theoretical and methodological methods of exploring the complexity of development in a practical and relevant way. It also provides useful information about structural factors which need to be considered by practitioners when designing pro-poor growth policies. Furthermore, the coverage of the core concepts of innovation, networks and development economics, enriched with multiple examples, makes it a valuable resource for scholars and advanced students of modern development economics. Cover Half Title Title Page Copyright Page Table of Contents List of figures List of tables Preface Acknowledgements Abbreviations 1 Introduction: Economic complexity and human development 2 Development paradigms 2.1 The economic growth paradigm 2.2 Innovation and structural change 2.3 Human development 2.4 Modern integral development approaches 2.5 Empirical example: Revealing different bottlenecks for development in Latin America 2.6 Chapter conclusion 3 Towards a ‘Sen meets Schumpeter’ approach 3.1 Complementarity of Sen and Schumpeter’s perceptions of development 3.2 Contributions and challenges of linking approaches 3.3 Using complexity thinking to create bridges: Networks, diversity and inequality 3.4 Chapter conclusion 4 Economic diversification and human development 4.1 Economic diversification in the history of economic thought 4.2 The relevance of economic diversification for human development 4.3 Disentangling positive, negative and dynamic effects 4.4 Addressing constructive critiques 4.5 Empirical exploration of the effects of economic diversification on human development 4.6 Chapter conclusion 5 Social networks, innovation and human development 5.1 Social capital theory 5.2 Social networks and innovation 5.3 Summary of positive and negative effects of social networks 5.4 Introduction to social network analysis 5.5 Case study in Peru: Measuring peasants’ social capital and innovation 5.6 Chapter conclusion 6 Entrepreneurship and human development 6.1 Entrepreneurship theories 6.2 Micro-entrepreneurship in developing countries: Obligation or capability enhancement? 6.3 Social entrepreneurship 6.4 Destructive entrepreneurship 6.5 Case study in the north-east of Brazil 6.6 Chapter conclusion 7 Policy dimensions for structural change and human development 7.1 The need for state intervention 7.2 Market failures and polarization effects 7.3 Specialization and diversification in the process of structural change 7.4 Institutional architecture for structural change and human development 7.5 Labour market and human agency policies 7.6 Chapter conclusion 8 Conclusion: Key ideas and research outlook Bibliography Index