Abstract
The question has recently been raised whether the basic needs approach to development conflicts with Third World aspirations for faster industrialization and the establishment of the New International Economic Order. This paper argues: (a) That to meet the basic needs of the poor in the Third World on a sustainable basis, it is necessary to transform its productive structures. In this transformation modern industry (including in most cases an appropriate capital goods industry) must play a central role. (b) That a properly conceived basic needs strategy should in general positively aid Third World industrial development. The paper concludes that accelerated industrialization and a substantially redistributive fiscal policy must be the two pillars of any effective basic needs programme.
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