William Lewis Essay

824 words - 4 pages

In William Lewis’ article “The Power of Productivity” lays out a myriad of development issues that countries face in the spirit of growth. Throughout his paper he discusses barriers to growth, competition, thinking of the consumer and productivity. In this paper about Lewis’ article we will discuss the latter areas as well as a few theories that should help increase countries’ pull themselves out of the muck.
Lewis goes into depth on two main points about productivity. The first being, “…it is necessary to look beyond broad macroeconomic policies…” The author does comment it is important to take it into consideration, such as exploitation, but it is required to go deeper into analysis. Each ...view middle of the document...

Quoting Lewis, “The main obstacles to economic growth in poor countries are the many policies that distort competition.” A few examples of these are that India’s retailers are completely shielded from a foreign company that can produce service at a lower cost. Or Moscow’s government that gives housing projects to their buddies versus the best suited for the job. And unfortunately, in poor countries they have less control over special interest groups that tend to have their way without regulations.
Lewis’ biggest point made in this paper, in my opinion, is in regards to how a government should think, “Think consumer.” Oft times thinking consumer, upsets the consumer. On the surface letting the inefficient companies fail might seem like a government is not caring about the consumer since now a number of workers need to find a new place of employment. However, by letting the inefficient firm fail you have allowed a better operating company come in and offer jobs to individuals, knowing that their company will be here to stay. Not because they are subsidized, but because they have the best product and/or service.
When one thinks about the theories we have learned in regards to economies, employing a select few should vastly assist poor countries. When looking at “rent-seeking” there is a blatant opportunity for the less developed countries to take advantage of. If countries took a...

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