Political Economy of Development UNFIN

Question 1

public goods

Answer 1

• good available to citizens
• security, welfare, sewage, etc.
• mark of effective is how effectively it can provide public goods
• more effectively provided in BR than NP states

Question 2

inclusive institutions

Answer 2

• Acemoglu/Robinson: political pluralism + effective states = effective economic institutions
• secure property rights
• unbiased legal system
• public goods: level playing field, available to all

Question 3

colonialism

Answer 3

x

Question 4

resource curse

Answer 4

• countries with oil, diamonds, mineral wealth do worse economically
• dutch disease
• boom and bust cycles: rise and fall in price of resource really effects economy
• corruption
• conflict generated
• removes need for taxation
• oil in nigeria

Question 5

state-led development

Answer 5

x