This paper develops a structural reinterpretation of economic growth and development through the lens of the Economics of Belonging. It argues that the expansion of a broad middle class constitutes the central mechanism linking economic growth, institutional development, and social cohesion. Moving beyond both neoclassical equilibrium frameworks and traditional development theories, the paper introduces effective demand as the economic expression of belonging, defined by the capacity of individuals to participate meaningfully in markets and institutions. The analysis proposes that economic systems operate under multiple equilibria, where institutional structures and degrees of belonging determine the selection of development paths. It integrates economic theory with a broader ontological framework in which belonging is the foundational condition of social and economic organization. Empirically, the paper revisits global development patterns, highlighting the role of middle-class formation in Western economies and contrasting it with structurally constrained models in other regions. It also reinterprets export-led growth as dependent on external effective demand, rather than autonomous internal development. The paper contributes to development economics, institutional economics, and political economy by offering a unified framework that connects growth, inequality, institutional design, and social integration.
Carlos Federico Obregon Diaz (Sat,) studied this question.