Albert O. Hirschman

Albert Otto Hirschman (born Otto-Albert Hirschmann; April 7, 1915 – December 10, 2012) was an economist and the author of several books on political economy and political ideology. His first major contribution was in the area of development economics. Here he emphasized the need for unbalanced growth. He argued that disequilibria should be encouraged to stimulate growth and help mobilize resources, because developing countries are short of decision-making skills. Key to this was encouraging industries with many linkages to other firms. His later work was in political economy and there he advanced two schemata. The first describes the three basic possible responses to decline in firms or polities (quitting, speaking up, staying quiet) in Exit, Voice, and Loyalty (1970). The second describes the basic arguments made by conservatives (perversity, futility and jeopardy) in The Rhetoric of Reaction (1991). In World War II, he played a key role in rescuing refugees in occupied France.