Economic development and exploitation for the sake of progress

The author considers economic growth as accumulation of means of production and labor force in terms of quantity. The article studies the cases when both the growth of population and, consequently, of labor force outstrips the accumulation of means ofproduction and the accumulation of means of production outstrip the growth of population. Both cases refer to the dynamics of exploitation in order to obtain wealth. The author concludes that quantitative growth is unstable and inevitably transfers into development, i.e. qualitative improvement of productive forces, however, development is impossible without growth. To study the development accompanied by growth, the author uses a two-sector model of the economic system, including product-surplus andproduct-defi cient sectors of the economy. The product-surplus sector produces basic products, with the output exceeding cost of production. The product-deficient sector produces pioneer products that serve as the source of development and basic productswith output lower than cost of production. The relations of product-surplus and product-deficient sectors are formed as product-saving and product-intensive. Product-saving option of development pushes the economy towards the market, whereas product-intensive one pushes it towards the plan. The article models both options of development. Both options assume exploitation for the sake of progress. The author concludes that, for present-day Russia, the development option with the plan dominatingand the market playing a subordinate role is favorable.