Why aren't countries rich?: Weak states and bad neighbourhoods

Abstract

This article challenges a common viewpoint that the policy choices made by state leaders are central to explanations of economic growth. It argues that there are two possible flaws in this viewpoint. First, that state leaders have a free choice in policy decisions; second, that it is policies that in large part determine growth rates. Using a set of variables designed to capture the weakness of the policy autonomy of the state and possible non‐policy influences on growth rates, the article concludes that initial conditions are a better determinant of wealth and growth than free policy choice.

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