Adjusting to Reality: Beyond 'State Versus Market' in Economic Development

Adjusting to Reality: Beyond 'State Versus Market' in Economic Development

by Robert Klitgaard
Adjusting to Reality: Beyond 'State Versus Market' in Economic Development
Adjusting to Reality: Beyond 'State Versus Market' in Economic Development

Adjusting to Reality: Beyond 'State Versus Market' in Economic Development

by Robert Klitgaard


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Originally published in 1991, Robert Klitgaard’s classic book addresses questions of enduring relevance in a lively and insightful way. Bribes, tribes, and markets that fail—these are the realities in many developing countries. The usual strategies for reform—be they capitalist or socialist—have failed to address them effectively. What is to be done when economic reforms leave the poor behind or when when new constitutions and elections are undercut by inefficient bureaucracies, overcentralization, and corruption? And what to do about persistent ethnic inequalities within developing countries?

The book provides inspiring examples from around the world, as well as analytical frameworks to guide inclusive policy discussion. Theorists will enjoy the novel uses of industrial economics, the theory of the firm, and the economics of discrimination. The book highlights overlooked causes of underdevelopment: imperfect information and weak information processing in individuals and institutions.

In the preface, the former President of Panama, Dr. Nicolás Ardito Barletta, writes:

"Poverty, Klitgaard argues, is—and should be—a principal concern of development strategists, but policy makers and analysts will continue to run from pillar to post in their search for a cure unless they can adjust their development schemes to reality…."

"The new approach that the author proposes is based on two fundamental principles. One is that the proper choice of economic strategies cannot be determined in the abstract but depends on particular circumstances… The other is that information is at the heart of problems in the real world of the developing countries… Klitgaard offers examples from Bolivia, Brazil, India, Indonesia, Malaysia, Pakistan, Peru, and the Philippines to make his point.

"The author suggests creative ways in which the state and citizens themselves can solve their own ‘inevitably unique problems.’ One of the key tasks, in Klitgaard’s view, is to ensure that environments are rich in information. This volume offers a broad framework for policy analysis that moves us closer to intelligent solutions to the real problems of the real poor in the modern world."

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Product Details

ISBN-13: 9781032040080
Publisher: Taylor & Francis
Publication date: 12/19/2021
Series: Routledge Revivals
Pages: 324
Product dimensions: 6.12(w) x 9.19(h) x (d)

About the Author

Robert Klitgaard is a University Professor at Claremont Graduate University. Formerly a professor at Harvard, Yale, and the National University of Singapore, he has also served as the Dean of the Pardee RAND Graduate School, America’s foremost Ph.D. program in policy analysis. His eleven books include Tropical Gangsters, named one of the New York Times Books of the Century.

Table of Contents

1. Beyond ‘State versus Market’ 2. The Socioeconomic Environment Constrains Market and State 3. Information and Market Institutions 4. Information and Markets: Two Examples 5. Actions by Buyers, Sellers and Governments. Appendix: Improving Market Information – A Framework for Policy Analysis 6. Making Government Institutions Work Better 7. Improving Incentives in the Public Sector 8. Curbing Government Corruption 9. Decentralization and Integration 10. Poverty and Ethnic Groups in Developing Countries 11. Three Strategies for Overcoming Ethnic Inequalities 12. The Evolution, Maintenance and Reduction of Ethnic Inequalities 13. Rethinking Economic Development.

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