Gunnar Myrdal (1898–1987)

This chapter takes up Gunnar Myrdal’s theory of circular cumulative causation and its application to various practical problems such as American race relations and economic development. He was of the view that the key to solving the black problem in America was to improve their education, housing and income security and thereby convert the vicious circle into a virtuous circle. Myrdal was also the father of welfare state in Sweden. Myrdal believed in egalitarian policies for underdeveloped poor countries where the consumption of the poor in the form of better nutrition, health and education is seen as an investment and therefore growth promoting. He advised underdeveloped countries to protect their industries, institute economic planning and adopt equality of opportunity. Underdeveloped countries should first integrate nationally before they are ready to integrate internationally to reap the benefits of a welfare world. Myrdal laid great stress on democracy both for developed as well as underdeveloped countries. He was of the view that underdeveloped countries had to go all the way to full democracy with universal suffrage even in their early stages of development. Guided by his social democratic background, he was of the view that egalitarianism, democracy, equality of opportunity and development all went together.