In Search of Prosperity: Analytic Narratives on Economic Growth PDF
Preview In Search of Prosperity: Analytic Narratives on Economic Growth
IN SEARCH OF PROSPERITY This page intentionally left blank In Search of Prosperity ANALYTIC NARRATIVES ON ECONOMIC GROWTH Edited by Dani Rodrik PRINCETON UNIVERSITY PRESS PRINCETON AND OXFORD Copyright © 2003 by Princeton University Press Published by Princeton University Press,41 William Street, Princeton,New Jersey 08540 In the United Kingdom:Princeton University Press,3 Market Place, Woodstock,Oxfordshire OX20 1SY All Rights Reserved Library of Congress Cataloging-in-Publication Data In search of prosperity :analytic narratives on economic growth / Dani Rodrik,editor. p. cm. Revisions of papers presented at a conference held at Harvard University,2001. Includes bibliographical references and index. ISBN 0-691-09268-0 (cl :alk. paper) — ISBN 0-691-09269-9 (pbk :alk. paper) 1. Economic development—Congresses. 2. Developing countries— Economic conditions—Congresses. I. Rodrik,Dani. HD73 .I52 2003 338.9—dc21 2002072854 British Library Cataloging-in-Publication Data is available This book has been composed in Times Roman by Princeton Editorial Associates,Inc.,Scottsdale,Arizona Printed on acid-free paper.∞ www.pupress.princeton.edu Printed in the United States of America 1 3 5 7 9 10 8 6 4 2 Contents Acknowledgments vii List of Contributors ix Chapter 1. Introduction:What Do We Learn from Country Narratives? 1 Dani Rodrik PARTI: HISTORICAL PERSPECTIVES ON ECONOMIC GROWTH Chapter 2. Australian Growth:A California Perspective 23 Ian W. McLean and Alan M. Taylor Chapter 3. One Polity,Many Countries:Economic Growth in India, 1873–2000 53 Gregory Clark and Susan Wolcott Chapter 4. An African Success Story:Botswana 80 Daron Acemoglu,Simon Johnson,and James A. Robinson PART II: TRANSITIONS INTO AND OUT OF GROWTH Chapter 5. A Toy Collection,a Socialist Star,and a Democratic Dud? Growth Theory,Vietnam,and the Philippines 123 Lant Pritchett Chapter 6. Growing into Trouble:Indonesia after 1966 152 Jonathan Temple Chapter 7. India since Independence:An Analytic Growth Narrative 184 J. Bradford DeLong Chapter 8. Who Can Explain the Mauritian Miracle? Meade, Romer,Sachs,or Rodrik? 205 Arvind Subramanian and Devesh Roy Chapter 9. Venezuela’s Growth Implosion:A Neoclassical Story? 244 Ricardo Hausmann Chapter 10. History,Policy,and Performance in Two Transition Economies:Poland and Romania 271 Georges de Menil vi CONTENTS PARTIII: INSTITUTIONS IN DETAIL Chapter 11. How Reform Worked in China 297 Yingyi Qian Chapter 12. Sustained Macroeconomic Reforms,Tepid Growth: A Governance Puzzle in Bolivia? 334 Daniel Kaufmann,Massimo Mastruzzi,and Diego Zavaleta Chapter 13. Fiscal Federalism,Good Governance,and Economic Growth in Mexico 399 Maite Careaga and Barry R. Weingast PART IV: ECONOMIC GROWTH WITHOUT SOCIAL DEVELOPMENT Chapter 14. The Political Economy of Growth without Development: A Case Study of Pakistan 439 William Easterly Index 473 Acknowledgments EARLY versions of the chapters contained in this volume were (with one exception) µrst presented at the conference “Analytical Country Studies on Growth,”held at the John F. Kennedy School of Government,Harvard Univer- sity,April 20–21,2001. I am tremendously grateful to the Ford Foundation for generousµnancial support that made this conference and the preparation of the country narratives possible. The Center for International Development at Har- vard provided logistical support. Even though their comments are not reproduced here, the discussants and other participants at the conference,some of whom came from very long dis- tances,made a very important contribution to the quality of the µnal product. I thank in particular the assigned discussants for the individual chapters:Philippe Aghion,Abhijit Banerjee,Robert Barro,J. Edgardo Campos,Mauricio Carde- nas,Alan Hirsch,Ishrat Hussain,Simon Johnson,J. Clark Leith,Benno Ndulu, Yung Chul Park,Urjit Patel,Lant Pritchett,and Ernesto Stein. Michele Kane handled the logistics for the conference with great skill. Zoë McLaren’s edi- torial and administrative help was invaluable in the µnal stages of manuscript preparation. This page intentionally left blank List of Contributors DARONACEMOGLU LANTPRITCHETT Department of Economics Kennedy School of Government MIT Harvard University MAITECAREAGA YINGYIQIAN Stanford University Department of Economics University of California,Berkeley GREGCLARK Department of Economics JAMESROBINSON University of California,Davis Department of Political Science University of California,Berkeley J. BRADFORDDELONG Department of Economics DANIRODRIK University of California,Berkeley Kennedy School of Government Harvard University GEORGESDEMENIL Kennedy School of Government DEVESHROY Harvard University The International Monetary Fund WILLIAMEASTERLY ARVINDSUBRAMANIAN Development Research Group The International Monetary Fund The World Bank ALANM. TAYLOR RICARDOHAUSMANN Department of Economics Kennedy School of Government University of California,Davis Harvard University JONATHANTEMPLE SIMONJOHNSON Department of Economics Sloan School of Management University of Bristol MIT BARRYWEINGAST DANIELKAUFMANN Hoover Institution and Department The World Bank of Political Science Stanford University MASSIMOMASTRUZZI The World Bank SUSANWOLCOTT University of Mississippi IANMCLEAN School of Economics DIEGOZAVALETA University of Adelaide The World Bank
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