… is from Gustavo Velasco’s May 1959 Freeman article “For poor and rich nations alike – The Way to Economic Progress“:
I am loathe to speak in the currently fashionable way of “economic growth” or “economic development” because, as Professor S. Herbert Frankel of Oxford University rightly said in a recent lecture in Mexico City, there is a tendency in our underdeveloped countries to think that our problems will be solved if we grow physically, i.e., if we just build enough new factories or engage in new activities, regardless of whether they will be profitable or whether they are being created artificially through protective duties or subsidies, and thereby in reality decreasing instead of increasing the income and well-being of the people.