Friday, May 18, 2012

What Makes Countries Rich or Poor? by Jared Diamond | The New York Review of Books

http://www.nybooks.com/articles/archives/2012/jun/07/what-makes-countries-rich-or-poor/

The strongest evidence supporting this view comes from natural
experiments involving borders: i.e., division of a uniform environment
and initially uniform human population by a political border that
eventually comes to separate different economic and political
institutions, which create differences in wealth. Besides Nogales,
examples include the contrasts between North and South Korea and
between the former East and West Germany. Many or most economists,
including Acemoglu and Robinson, generalize from these examples of
bordering countries and deduce that good institutions also explain the
differences in wealth between nations that aren't neighbors and that
differ greatly in their geographic environments and human populations.

---SPSmith

No comments: