Economic Growth Gauntlet
Fredrik Erixon tosses down the gauntlet.
The reason countries are poor is not that they lack
infrastructure – be it roads, railways, dams, pylons,
schools or health clinics. Rather, it is because they lack
the institutions of the free society: property rights, the
rule of law, free markets, and limited government.
- In a majority of poor countries, the average poor
person is typically unable to own and transfer
property. Courts of law are slow, expensive and
- Government plays a large role in the economy and
government policies undermine incentives to engage
in mutually beneficent economic activities.
He argues that economic aid is counterproductive, because it reinforces corrupt governments. Thanks to Global Growth Blog for the pointer.