The Brazilian Profit Machine: Best Business Sectors

 Albert Hirschman (1958), for example, said: "Yo, Gerschenkron didn't even think about how it's during the development process itself that the features of being backward come up and then like, make more changes necessary if development wants to keep going." Like, listen up! So, like, Gerschenkron's whole thing is kinda off, ya know? There isn't some predetermined list of backwardness issues waiting to be addressed, do you get what I mean? Countries will only realize how far behind they are once they begin the grind to level up. Hirschman (op. cit., p.10) states: "It's like, developing countries will figure out which of their institutions and character traits are, like, totally backward and need to be reformed or ditched, you know?" Development is more than just calculating and managing the costs and benefits of progress. It's more about finding a way to progress in difficult circumstances, you know?

Gunnar Myrdal's (1957) circular causation of a lit process captures the essence of the journey to progress. 

According to Myrdal's circular causation theory, "a change does not cause the opposite changes, but rather mad supportive changes that take the system even further in the same direction" (p.13). Myrdal said, "Yo, what if we apply this process to all of the domestic and international factors, and how they interact?" It could either slow or accelerate the overall change process, you know? Yo, when it comes to investing, if you decide to establish an entire industry in a specific community, it will significantly increase the community's income. It's all about the multiplier effect, you know. People will move from low-paying to higher-paying jobs, and the unemployed will finally find work. The market size is booming in that area, and a lot of investors and workers are popping up. Rising profits and incomes generate increasing savings. Tax collection is increasing, allowing us to flex our tax rates and improve public services. Yo, when the government provides us with useful public services and quietly lowers tax rates, it's a total vibe for businesses and workers. And then the circular cumulative causation thing just keeps going. 

Perhaps more illuminating are the vibes of knowledge, which are hella increasing with learning, and thus increasing knowledge and stuff. 

Making investment moves, for example, completely elevates entrepreneurs' experience and knowledge, thereby increasing their ability to make even more investment decisions. It's all about the hustle, you know? An underdeveloped country is one in which the lit upward circular causations of a mad cumulative process have not yet been sparked, you know? It's extremely difficult for underdeveloped countries, you know? The circular causation thing completely messes up their development. That is like, the Bruh, the vibes that make a country hella backward are straight up trying to keep it that way, whereas the developed countries have mad forces pulling them upward. Myrdal responded: "Yo, laissez faire policies ain't gonna do squat to activate countervailing forces against underdevelopment." OMG, he really emphasized that unfiltered markets are, like, so not cool for underdeveloped countries. OMG, free-market economists are all for trade and capital account liberalization, thinking it's all balanced and stuff. But Myrdal said, no way! He believed that those things would benefit the developed countries the most. So, opposite vibes, you know? Myrdal (1957, p.28) was like, "Yo, when the markets get all free and wide, it's gonna give mad advantages to the industries in the already popular expansion centers. They typically work under conditions of increasing returns, so they simply block the handicrafts and industries of other regions that were there first." Hirschman's backward and forward linkages flex those mechanisms, allowing the binding agent to make decisions. Like, really, investing in sectors with crazy backwards linkages necessitates some serious decision making from the people who supply inputs to the investor, you know? Growing the market through increased demand is incredibly exciting and motivating. It's like creating a growth mindset out of thin air and putting intense pressure on managers to up their production game, you know?

OMG, Hirschman's (1958) backward and forward linkages bring up some serious vibes and stuff.

He was thinking about economic development and such, but not looking for missing factors like capital, technical knowledge, or entrepreneurship. He didn't believe you could simply drop those things in from the outside to fill the void and make everything better, you know? He wanted to achieve a higher level of economic equilibrium and such. According to his analysis, underdeveloped countries do not lack development resources, but rather have lazy, wasted, or misguided work and hustle, an unused ability to save, and a variety of useful skills. That is, in underdeveloped countries, resources are not set in stone. They will come into play when development decisions require them. To achieve economic development, we need a total vibe that brings together and activates as many resources as possible, you know? (op. cit., page 6). Making decisions is essential for the development process because "development is held back mainly... by a lack of the skill to make and follow through with development decisions" (op. cit., p.36). OMG, Hirschman was all about keeping decision makers on edge so they would actually do something and bring in the development factors. So forget about that equilibrium stuff, you know?