How Do You Spell RAUL PREBISCH?

Raul Prebisch was an Argentine economist who made significant contributions to the field of development economics. Born in 1901, Prebisch became one of the most influential economists of the 20th century, particularly known for his work on the economic relationships between developed and developing countries.

Prebisch's most notable contribution was the formulation of the Prebisch-Singer hypothesis, which argued that the terms of trade between primary commodities (such as agricultural or mineral products) and manufactured goods tend to deteriorate over time. According to this hypothesis, the prices of primary commodities tend to fall relative to the prices of manufactured goods due to the limited demand for primary products and the increasing demand for manufactured goods. This concept became known as the "deterioration of terms of trade" and served as a foundational pillar in understanding the challenges faced by developing countries.

As the Executive Secretary of the United Nations Economic Commission for Latin America in the 1950s and 1960s, Prebisch also played a crucial role in promoting economic development policies in Latin America. He advocated for import substitution industrialization, which aimed to develop domestic industries and reduce dependence on foreign imports. This approach became widely adopted by various Latin American countries.

Prebisch's work and ideas had a substantial impact on the field of development economics, as well as on policies implemented by governments in developing countries. His theories continue to be relevant today, providing insights into the dynamics of international trade and the challenges faced by developing nations.