Over recent decades a simplistic view about the fundamentals that govern the theory and practice of development has taken root. Stated nakedly, this view holds that growth requires two things: foreign technology and good institutions. Failure to grow can be attributed to either (or both) of two pathologies. Call one the "protection" pathology, in which governments stymie progress by reducing access to foreign investment and technology. The other pathology is "corruption," where political leaders fail to respect property rights and the rule of law.
Over recent decades a simplistic view about the fundamentals that govern the theory and practice of development has taken root. Stated nakedly, this view holds that growth requires two things: foreign technology and good institutions. Failure to grow can be attributed to either (or both) of two pathologies. Call one the "protection" pathology, in which governments stymie progress by reducing access to foreign investment and technology. The other pathology is "corruption," where political leaders fail to respect property rights and the rule of law.