Archive for November 1st, 2013

Wasting time in traffic is good for growth?

November 1, 2013

Such news items are frustrating.

The author says it is good that Americans are wasting more time on traffic:

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It is governance and rule of law stupid…

November 1, 2013

Jeffrey Gedmin CEO of the Legatum Institute has this nice piece in proj syndicate.

Econs never give up on the famous four word line Рit is economics stupid. Hyped by the Clinton campaign it just trumped everything else.  This was followed by good economics is good politics. Economic imperialism triumphed over everything else. Just fix economics and rest all is well.

What is seldom understood is that it is basically politics which drives everything. If politics is not right it shows up in everything. Good politics leads to many other good things including economics. Political system is the supreme thing and just like all important things are removed from economics, so is politics. For some time till there was Great moderation econs believed they were right. However, the recent crisis again shows the importance of politics.

Anyways, Gedmin shows how the recently released Legatum Prosperity index adds governance and rule of law to development:

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Why Brazil in 2010 is not richer than Britain in 1960?

November 1, 2013

Prof Ricardo Hausmann of Harvard has this interesting article.

He says most developing countries follow the path of developed countries to become like latter. There are some well known steps to this development:

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