Pushing Frontiers of Development Thought

Abstract

The theme of this festschrift, “Markets, State, and Communities,” in honor of Yujiro Hayami, is quite appropriate. It represents, thus far, the culmination of the evolution of his economic thought and contributions. As noted in his latest writings, the most important agenda for economists currently concerned with the reduction of poverty in developing economies, the maintenance of economic vitality and social harmony in developed countries, and the preservation of the environment globally, is how to combine the roles of markets, the state, and the community in the total economic system suited to each country’s culture and social values to achieve these objectives; as by nature, each is subject to failures — market failure, government failure, and community failure.