ECO1401 APPLICATION ESSAY #5 - ECONOMIC GROWTH

The science of economics began with Adam Smith's inquiry into The Wealth of Nations written in 1776. The question of why some countries grow and become wealthy while others lag behind is a fundamental question in economics. Economic growth theory tries to answer this question or at least to shed light on it.

Evaluate the neo-classical growth theory and discuss what it says about the kinds of policies that would help other countries move onto a path of sustained growth. You might contrast the experience of a country like Vietnam with countries in Africa or South Asia that have struggled to achieve sustainable growth.