Gambling on Development

In the last thirty years, the developing world has undergone tremendous changes. Overall, poverty has fallen, people live longer and healthier lives, and economies have been transformed. But why have some countries prospered, while others have failed? Stefan Dercon argues that the answer lies not in a specific set of policies, but rather in a key "development bargain," whereby a country's elites shift from protecting their own positions to gambling on a growth-based future.