Right Diagnosis, wrong prescriptions
by
BenK
08/18/2007, 10:10 AM #
One can tell, from how the prescription occurs in the first paragraphs, prior to the diagnosis and evidence, that the conclusions came before the research for this columnist.
In fact, this research, while elegant and intriguing, compelling and persuasive, implies nothing about what it takes for an economy to cross the gulf. It does provide another picture of development and underdevelopment. However, prejudice is the only justification for believing that government interference is the only, or even a potential, means to solve this problem.
There is no reason to believe gov't is omnipotent in this, or any other, regard. There may be a gap that the markets alone can't close; a societal gap or a cultural gap or some other issue. Countries may just take time to mature or find ways around gaps and barriers created by other nations.
Certainly countries are complex creatures of economies, people, geography, etc. There are ways to characterize and describe their development and barriers to it... but there may not be such a simple solution as communism/centralized decision making that can outsmart millions or billions of self-interested, sometimes clever, semi-rational individuals all acting with or against their own governments as they perceive the interest of self, clan, family, religion, history, etc.