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16 November 2017
Rapid economic growth in developing countries is usually put down to good economic institutions. But many developing countries with rapid economic growth actually have weak institutions.
New book Deals and Development has a different approach. Kunal explains the book’s finding that it is actually the interaction that political elites have with economic actors – the deals – that makes the difference. The answer is not in institutions, but in politics:
15 November 2017
Eric Werker is Associate Professor at Beedie School of Business, Simon Fraser University in Canada. He is also one of the editors of path-breaking new book, Deals and Development, alongside Kunal Sen and Lant Pritchett. Watch him highlight the powerful policy implications of the book.
9 November 2017
This path breaking book is edited by three globally renowned ESID experts on the politics of economic development, Lant Pritchett, Kunal Sen and Eric Werker. The book advances a new conceptual framework for understanding how economic growth is ignited and maintained in a range of developing countries. It investigates how relationships – “deals” – between political and economic actors explain why it is rare to see growth episodes being sustained in the developing world, and why developing countries have seen such differential success, both in igniting economic growth and in transforming growth accelerations into growth sustenance.
Eleven chapters by ESID experts feature specific country examples across a wide spectrum of institutional and political contexts in Africa and Asia. Country cases range from Bangladesh to Cambodia, Malawi to India. The book is brilliantly useful in providing actionable levers to create reform and improve countries’ chances of bringing about transformative and sustainable economic growth.
Here’s what celebrated economists say:
“Pritchett, Sen, and Werker show intellectual courage in taking on one of the most inconvenient facts about economic growth and development – that most countries have unstable growth rates, shifting from boom to bust and back again. They challenge the prevailing institutionalist consensus, which they convincingly argue is unhelpful for confronting that instability of growth. Instead, they lay out a world of ‘deals’ among political and economic actors which can support a transition from bust to book, but can also unravel so that the boom is not sustained. These intrepid authors will change the way you see economic growth.“
“The Holy Grail of development is a flexible framework for understanding when the political circumstances are consistent with the economic activities we all know lead to growth. Explaining this flexible framework in detail, Deals and Development advances a powerful set of new concepts.”
“This book is built around two facts that are widely known but poorly appreciated: developing countries grow much faster than rich countries, but unfortunately developing countries also shrink much faster, and they shrink much more often. Slow growth is not the result of slow growing, but of more frequent and rapid shrinking. Pritchett, Sen and Werker tackle the source of this pattern with an intriguing conceptual framework and a series of detailed case studies. This is an important book, both for contributions and for identifying a weakness in how we think about economic development.”
2 November 2017
Sabyasachi Kar is author of the insightful book The Political Economy of India’s Growth Episodes with Kunal Sen. On the release of the World Bank’s Doing Business Rankings, Sabyasachi outlines how the framework developed in their book provides a game-changing way of identifying the conditions for better business in India.
The World Bank’s Doing Business (DB) rankings for 2018 have just come out and India has made a very significant jump, improving its rank from 130th in 2017 to 100th. These rankings are based on the country’s performance in several areas, like starting a business, getting construction permits, getting electricity, contract enforcement, etc.— fields where India has traditionally done very poorly, resulting in its global rankings hovering around the 130s during the last decade. This had prompted the current government to initiate a slew of business-friendly institutional reforms, including “Make In India”, simplification of tax procedures, bankruptcy laws and so on. All of these seem to have led to the big jump in India’s ranking. Continue Reading →