2. why do some countries grow and others don't?

Question 1

How do Acemoglu and Robinson explain rapid growth in countries?

Answer 1

Acemoglu and Robinson argue that rapid growth occurs when countries transition from extractive to inclusive institutions. Example: China post-1978 reforms. Temporary growth may also occur in extractive regimes (e.g., Soviet Union).

Question 2

How does Jeffrey Sachs explain slow growth in some countries?

Answer 2

Sachs argues geographic disadvantages, like being landlocked or tropical, slow growth unless mitigated by aid or trade. Example: Rwanda’s recovery post-genocide relied on reforms and international aid.

Question 3

How does urbanization help countries leapfrog development stages, according to Glaeser?

Answer 3

Glaeser emphasizes urbanization as a driver of development. Cities concentrate resources and skills, allowing nations to bypass traditional stages. Example: Mobile banking in Kenya (M-Pesa) transformed financial access.

Question 4

What policies does Edward Glaeser argue are more important than institutions?

Answer 4

Glaeser argues that good policies, such as trade liberalization and education investments, drive growth even in weak institutional contexts. Example: Rapid urbanization in Vietnam due to trade-focused policies.

Question 5

How did the Asian Tigers achieve rapid economic success, according to Glaeser?

Answer 5

Glaeser highlights that the Asian Tigers benefited from economic freedom, high savings, and education. Example: South Korea transitioned from agrarian poverty to industrial success through land reform and investment in human capital.

Question 6

What is premature industrialization, and how does it relate to Sachs’s work?

Answer 6

Sachs notes that premature industrialization occurs when countries industrialize without traditional growth stages. Example: Some African nations face challenges compared to earlier industrialized economies.