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Paul Baran, “On the Political Economy of Backwardness,”
The Manchester School ofEconomy and Social Studies, January, 1952, V.XX, No. 1: 66-84.
On the Political Economy of
Backwardness
I
The capitalist mode of production and the social and
political order concomitant with it provided, during the latter
part of the eighteenth century, and still more during the entire
nineteenth century, a framework for a continuous and, in spite
of cyclical disturbafices and setbacks, momentous expansion
of productivity and material welfare. The relevant facts are
well known and call for no elaboration. Yet this material
(and cultural) progress was not only spotty in time but most
unevenly distributed in space. I t was confined to the Western
world ; and did not affect even all of this territorially and
demographically relatively small sector of the inhabited globe.
Germany and Austria, Britain and France, some smaller
countries in Western Europe, and the United States and
Canada occupied places in the neighbourhood of the sun.
The vast exeanses and the multitude of inhabitants of Eastern
Europe, Spain and Portugal, Italy and the Balkans, Latin
America and Asia, not to speak of Africa, remained in the
deep shadow of backwardness and squalor, of stagnation and
misery.
Tardy and skimpy as the benefits of capitalism may have
been with respect to the lower classes even in most of the
leading industrial countries, they were all but negligible in
the less privileged parts of the
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