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Father of economics, the most influential personality in the field of development economics, his basic assumptions are still identified as the key concepts and considered as the core elements in the developmental studies. He had contributed his major work "Wealth of Nation" (1776) which is considered as the origin of the mainstream of classical political economy. According to Smith's developmental structure, the following two types of units of analytical perspectives are the pre-requisites for the development and growth.
Economic Equilibrium Analyses:
Smith explained the role of market and its operation according to maintain the equilibrium which played critically as the 'invisible hand', i.e. the principle of supply and demand and phenomena of competition control the inflation and fluctuation in the market.
The productive efficiency in resource distribution:
Expansion of market took placed in the result of expanded phenomena of the territorial growth of population; people need more to eat, drink or to use goods and services naturally. And it result, efficiency of productive sector will maximize. Here Adam smith discussed the principle of expansion in the market that efficiency to lessen goods and services specialized among the producers and this specialization would lead the growth in the productive sector. All this phenomena needs the capital either in the form of wealth, investment of profits from the industrialists, or the capital in the shape of physical and fiscal capital to increase the growth mechanism.
In short, the main points from the Smith's developmental scheme is that there should be some accumulated wealth and profit to invest in the productive sector that will come from the industrialists, their capital and the invisible hand of the market that is the principle of supply and demand which also leads to the higher productivity rate and run as the engine of economic growth. There should not be dominancy of state to interfere in the market mechanism. Principally, government role would be as watch dog to preserve the sanctity, maintenance of law and order etc. Adam Smith's another main focus for development to specialize the division of labour to produce more output from the least input. labour should be facilitated as an organization and to progress the quality and quantity of labour then we can accelerate the industrious efficiency.
David Ricardo: (1772-1823)
He was the person who had presented the suspicious theory according to predict future growth. His major works were the theories of 'land rent and distribution' and 'comparative advantages' that decipher the linkage between the industry and agriculture. He underlined the sources of growth in his theory of land rent and distribution in which he discussed that with the expanded nature of population there will be an increase in demand to produce more food from the food production zone due to which land prices will go up and use of all types of land, marginal land and agriculture land will require to fulfill the needs of the population, because of the competition in the market to proliferate the profit and productivity rate. However, there will be some detriments to the industrial sector because of the utilization of poorer land and inflation in the prices and pressurize the wages from the industrialist which end up zero profit. He had suggested the factors of growth and development in addition to the sources of Adam smith. Which are as under?
Technical innovation: International trade:
He was the member of the group who suggested increasing the rate of economic growth through mechanization and technical innovative ideas that introduce the machines in agriculture sector and remove the extra manpower, to speed up the process of growth and export the surplus goods and import the goods for country to enhance the international trade.
Ricardian theory of comparative advantages was about All is well, that is, if one country could not produce some goods it will take the advantage to exchange the products that it can produce. As a result, both countries have a chance to get beneficial and if all are producing goods and services for instance, throw them in the international market and get beneficial to all in the phenomena of comparative advantages .In short, Ricardo has suggested the technical innovative boom, international trading and the very positive view of analyses that is unity to accommodate everyone. These factors are the main engine of growth and development for Ricardo.
Joseph Schumpeter: (1883-1950)
His major work was 'The Theory of Economic Development' He has given a precise distinction between growth and development. According to Schumpeter, Growth is a slow and steady process with the accumulated wealth and profits but development in contrary is the very much innovative process in which there is a need to introduced the new productive and innovative techniques to enhance the rate of development. The innovative Schumpeter idea of entrepreneurship that not only the industrialists but entrepreneurs are the engine of development which mobilize the economic growth, who are the driving force to catalyze the process of growth. If there is the stability to produce the entrepreneurs as a group then these will be the jumps to the obstacles of the development.
Karl Marx: (1818-1883)
A figure of classical political economy, according to 'The Labour Theory of Value' that the important sources of economic growth are the valorization and accumulated wealth/ capital under the rubric of capitalist structure as Marx concerned with. Valorization is the value of worker and that is the real value which is exploited by the capitalist to make more and more profit. Marx argued that the economy is based on the social associations of labour and the worker is the factory to generate the value which is the compelling factor to exploit them to pay fewer wage in respond to increased hours work and the basic reason for the accumulation of the capital for the survivability in the contest and compete with others capitalists. Two processes of capital concentration which is the additional value produced by the workers and the capital centralization that emerging with other firms to lead the technical and organic conformation of capital and consequently there will be a jobless growth of unemployed workers due to the technological revolution and state interference. Marx has viewed the society as a totality and evolved its modes of production leads to the era of development. Due to class struggle, he had a solution to all problems of the society to resolve in the shape of socialism and then communism to overthrow the capitalism. According to Marx, Bourgeoisies are the engine of economic development, which will diminish the capitalism and they will do justice to the economic system and flourish with development.
My opinion/ conclusion:
Four of all theorists are in one chain of thought to decipher the developmental determinants have their own concepts and ideas which presents the economic growth model according to their own perceptions. I admire all of them Adam Smith, Ricardo, Schumpeter and Marx, all have done the tremendous work. Adam Smith has started the developmental debate within the academic world; Ricardo suggested technological innovation in contrast to the French physiocrats to enhance the process of growth with the help of mechanization in the agriculture and productive sector. Where Schumpeter has given the idea of entrepreneurship to increase the rate of growth and then Marx has presented the developmental structure over the long period of time which is the evolutionary process. All have some common points; for example accumulation of wealth and capital to invest in the productive sector, technological techniques and innovatory implementation to increase the GNP rate and the specialization of the division of labour. To conclude my opinion, I must agree with the Marxist perspective because Marx discussed the capitalism and all of above theorist agreed on one point of capitalistic characteristics and they are standing on one platform which is the accumulation of capital and reinvestment in the industrious zone to make more profit. And these main factors play a major role to increase the economic growth and development.