Theory of cumulative circular processes

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The theory of cumulative circular processes - the theory that launching the process of growth and economic development in underdeveloped countries is possible thanks to active state interference. According to Ragnar Nurske, in a country with poorly developed economies, there are cumulative processes that make the state of backwardness consolidate in it and prevent the emergence of self-accelerated economic growth. Interruption of these processes requires the active role of the state, focused on creating the industrial sector. Nurske suggests the existence of a poorly developed circular system of forces in the country that interacts with one another, making the poor country unhappy. This situation is stated by the statement that the country is poor because it is poor. Bibliography

Magdalena Majchrzak: Introduction to economic policy. Szczecin: 2007.

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