Professor Bauer on development : A review article

Bauer's views on vicious circles, the ‘widening’ gap between rich and poor countries, central planning, foreign aid and the appeal of Marxism in less developed countries are summarised. There is a discussion and summary of an appropriate analysis of the issues raised by Bauer. Attention is concentrated on the evidence related to a ‘widening’ gap, the potential failures of the price mechanism and the effects of foreign aid. It is suggested that Bauer's analysis is superficial, even though this may also be true of some he criticises, and that the case for aid remains strong.