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Roots of development - Article Example

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In the article “Roots of development”, the author discusses different points of views of various economists on factors that determine economic growth with each of them arguing differently. Some argue that climate which is affected by geography affect economic growth while…
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Roots of development

Download file to see previous pages... Development of good institutions are key to continue economic growth as evidenced from the colonial times. Most countries which had favourable geography for the Europeans, benefited from the development of this kind of development. North American and Australia, had better geographical conditions more than African countries and South America hence the different levels of economic developments. Due to the bad geographical conditions in Africa, there was a high mortality rate among settlers, hence utilising the continent as a source for raw materials. They planted institutions during the colonial period bring about the economical differences as seen in the present world.
According to the author, government policies have a tremendous impact on the economic growth. This is further supported by the fact that countries with good policies supporting business, are doing well while those that are not are doing dismally terms of economy. Moreover, policies acts as the proxy for institutional development, thus poor policies will deter development of the institutions necessary for rapid economic development. This fact leaves policies as the most fundamental factor determining economic growth in a particular country (Print, ...Download file to see next pagesRead More
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