William Easterly- The White Man's Burden

Chapter 3

You cant plan a market

- Difficult to get a market going in a socially beneficial way
- Need to set rules, otherwise specific people will benefit on cost of others
- Most African countries that have received intensive treatment from structural adjustment have had negative or zero growth. Also, ex-communist countries have had sharp negative growth.
- Low trust in economy and market, low per capita income!
- Another problem of society: we must solve the problem of protection of property and person
- Property rights also determine whether markets work as well as good laws
○ Property rights are an incentive to accumulate assets over time and across generations, which is often necessary to have the productive capacity to meet consumer needs