The Quest for Development
What role does history play?
Areendam Chanda &
Louis Putterman
Published: June 2004
It may be no coincidence that those countries that grew most rapidly in the late
twentieth century—including South Korea, China, and, of late, India—were
relatively developed civilizations when Western Europe began its overseas
expansion five centuries ago. In this article the authors explore the literature
showing that institutions matter to growth, then examine new evidence that the
‘social capability’ to achieve growth is a function of capacities that go beyond the
formal education system. Remarkably, a long history of nationhood at the time of
Columbus means better odds of growth today.
More Papers From These Authors in World Economics:
Values Matter
Human beings display a complex set of behavioural predispositions, including a strong inclination to pursue self-interest but also empathy, receptivity to norms of reciprocity, and an inclination to punish violators of such norms. Not only are workable economic arrangements constrained by the types of people a society shapes from the genetic material at hand, but also, the arrangements adopted will themselves strengthen or weaken dispositions towards reciprocity and other behaviors. Here the case is argued for considering the two-way interaction between institutions and values by discussing three examples: the workplace, the family, and social insurance systems.
Read Full Paper >