[2] He characterizes this "dirigiste dogma" as having four essential elements: For Lal the sources of this "dogma" is Keynesian macroeconomics - with its macro quantity adjustments, the growth and spread of national income accounting, the increased use of macroeconometrics (a la Tinbergen and his associates and successors), and the increased use input-output analysis (a la Leontief).

While these may have helped our understanding of macroeconomics, Lal argues, but they have led to an underemphasis on the role of prices.

Thus, he argues, in a second-best world government intervention should not be undertaken lightly just because of market failures.

Asadullah, M Niaz (2002) The Poverty of "Development Economics", Latin American Politics and Society, Summer Behrman, Jere R. (1987) The Poverty of "Development Economics" by Deepak Lal, A Book Review in The Journal of Political Economy, Vol.

13; Issue 61617; col F) The Times (1983) 'Third World Theories face a Counter-revolution' (Michael Prest: Friday, Sep 09, pg.