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Scientia Potentia Est: A New Theory of Economic Growth and Development

The present paper proposes a new theory of economic development based on a general theory of economic systems as networks formed out of individuals acting on the basis of their psychology and social position. A view is obtained of the economic system as a self-organising system of knowledge, and economic development the growth of knowledge. From this is obtained a set of surprisingly specific conditions which promote the growth of knowledge, the ability to use it, and economic development. The implications of this vision of economic development for the practice of development policy is assessed.