Economics (Asian Development) Essay Example | Topics and Well Written Essays - 2500 words

Economics (Asian Development) - Essay Example The planning mind set is in turn linked to previously discredited theories. Such as that poverty is due to a poverty trap which can only be alleviated by a large inflow of aid from rich country to poor countries. The aid inflow is of course administered by this same planning apparatus. This is a bad news for worlds poor as historically poverty has been ended by central planners. It is only ended by searches both economical and political who explore solution by trial and error. Have a way to get feedback on the ones that work and then expand all of these in an unplanned spontaneous way. Examples of searches are firms in private market and democratically Of course there are hard questions about directions of casualty and exactly which attributes of political and economic freedom are most crucial for development. However to deal with the 1st problem. Since researchers know a little bit about the determinants of bad govt studies can explore whether bad govt causes poverty. The research is less successful at identifying which aspect of bad govt matters such as democracy versus corruption vs. economic freedom. Different dimensions of good govt tend to come together in packages, so it is hard to tell which is causing economic development. This last issue is much harder to resolve but the correlation are at least supportive of strong theoretical priors that democratic and market accountability go with economic success not to mention the vast historical and case study literature that supports this conclusion. The variance of outcome is much higher at low levels of political and economic freedom than at high levels. For countries with nearly complete freedom all of them are rich within a narrow range. For countries with intermediate level of freedom there is a vast range of development outcomes. A few years ago what most people had in mind when they thought of India was land of tigers, the land of taj mahal and a land of