On the inapplicability of general economic approaches to countries lagging behind in economic development

Abstract

For centuries, there has been a large gap in the level of economic development between the countries of the “golden billion” and the rest of the world, where, with the exception of certain states (China, the “Asian tigers”, some other countries), economic activity and living standards of the populations have been declining and deteriorating. The purpose of the article is to prove the limited possibility of applying to lagging countries, including post-socialist states, and namely Russia, many theoretical approaches and practical guidelines that do not correspond to economic realities due to these nations’ unfavorable position in a globalizing world. The reasons for the economic lagging of these countries, the influence of various factors on their development, and the conditions determining their stagnation are explored; some generally accepted recommendations for overcoming backwardness are critically assessed. The unacceptability of certain postulates of mainstream economics for modern Russia is substantiated. The author sets out his vision of ways to overcome economic backwardness and scrutinizes the potential opportunities for accelerated growth of the Russian economy.