The irony, of course, is that high development theory was right. By this I do not mean that the Big Push is really the right story of how development takes place, or even that the issues raised in high development theory are necessarily the key ones for making poor countries rich. What I do mean is that the unconventional themes put forth by the high development theorists their emphasis on strategic complementarity in investment decisions and on the problem of coordination failure - did in fact identify important possibilities that are neglected in competitive equilibrium models. But the high development theorists failed to convince their colleagues of the importance of those possibilities. Worse, they failed even to communicate clearly what they were talking about. And so good ideas, important ideas, were ignored for a generation after they were first enunciated. (Paul Krugman)

The irony, of course, is that high development theory was right. By this I do not mean that the Big Push is really the right story of how development takes place, or even that the issues raised in high development theory are necessarily the key ones for making poor countries rich. What I do mean is that the unconventional themes put forth by the high development theorists their emphasis on strategic complementarity in investment decisions and on the problem of coordination failure - did in fact identify important possibilities that are neglected in competitive equilibrium models. But the high development theorists failed to convince their colleagues of the importance of those possibilities. Worse, they failed even to communicate clearly what they were talking about. And so good ideas, important ideas, were ignored for a generation after they were first enunciated.

Paul Krugman

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big coordination course development emphasis equilibrium fact failure forth generation good high importance investment irony key making mean ones place poor problem push rich right story talking theory worse unconventional complementarity

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