Why Development Is Rare: The Functional Architecture of Generative Development

Nicolò Bellanca

Working Papers - Economics from Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa

Abstract: Why is sustained, adaptive development so rare despite decades of institutional reform, industrial policy, macroeconomic stabilization and innovation strategies? This paper advances a structural explanation. It defines generative development as a process that is simultaneously endogenous, cumulative, structurally irreversible and transformatively adaptive, and argues that sustaining these four properties requires four irreducible causal functions: Collective Action (A), Production (P), Stabilization (S) and Redefinition of Goals (F). The core claim is that the joint reproduction of these functions through a configuration of functional causal closure provides a necessary structural condition for sustaining development as a self-reinforcing and adaptive historical process. No dyadic or triadic subset of these functions is structurally sufficient to reproduce all four constitutive properties at once. Partial closures may generate growth, learning, institutional reform or strategic direction, but they remain intrinsically fragile and structurally exposed to stagnation, crisis or lock-in. The paper offers a unified structural reinterpretation of institutional, evolutionary, developmental state and mission-oriented approaches as partial theories of distinct development functions. It also derives a typology of development regimes as systematic configurations of partial and full functional closure. A minimal dynamic representation presented in the Online Supplement illustrates the internal consistency of the argument. Overall, the paper reframes development as a problem of causal architecture rather than factor accumulation, with direct implications for development theory, industrial policy, institutional reform, mission-oriented strategies and comparative historical research.

Keywords: Generative development; Structural transformation; Industrial policy; Institutions and development; Mission-oriented policies (search for similar items in EconPapers)
JEL-codes: B52 O10 O25 O33 O43 P16 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2025
New Economics Papers: this item is included in nep-his, nep-hme and nep-pke
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