Gunnar Myrdal (1898–1987) gave this lecture at the University of California, Los Angeles (UCLA) in 1966 about the US, Europe, and international development in the Third World.
Gunnar Myrdal was a much underrated economist, and so much so that G. L. S. Shackle – whether rightly or wrongly – judged that “had the General Theory never been written, Myrdal’s work [sc. Monetary Equilibrium 1931] … would eventually have supplied almost the same theory” (Shackle 1967: 124) (see this post here).
It is interesting what Myrdal says here:
(1) he argues that the developed world in 1966 should liberalise its economies to Third World imports and allow outward capital flows into the Third World;
(2) however, the Third World should maintain its protectionist stance and stop First World imports from crippling its infant industry.
(3) he notes the liberalisation of trade after WWII and its history;
(4) he discusses the US Trade Expansion Act of 1962;
(5) he discusses the Marshall plan, and how it benefited Europe, as well as the emergence of the European Economic Community (EEC). Myrdal argues that the West should have given Marshall-style aid to the Third World for development purposes.
(6) Myrdal points out that national and linguistic differences in Europe impede its economic integration. And Myrdal appeared to think that Britain should not have joined the European Common market on economic grounds.
(7) Although Myrdal seems to have approved of the European Free Trade Association (EFTA), he had some harsh comments on the anti-democratic nature of the emerging European Economic Community (EEC)! (from about 42.00). How topical!
At 43.29–43.43 Myrdal even says:“I have said before and I want to repeat it now: that no American senator – living or dead – could ever have thought of voting for the United States joining a supranational, bureaucratic and un-democratic organisation like the EEC.”Ouch!! The EU of course directly came out of the EEC.
This can be heard below.
Myrdal, Gunnar. 1931. “Om penningteoretisk jämvikt. En studie över den ‘normala räntan’ i Wicksells penninglära,” Ekonomisk Tidskrift 33: 191–302.
Myrdal, Gunnar. 1939 . Monetary Equilibrium. W. Hodge & Company, London.
Shackle, G. L. S. 1967. The Years of High Theory: Invention and Tradition in Economic Thought 1926–1939. Cambridge University Press, Cambridge.