Unlocking Development: A CAGE Policy Report

Authors

Mark Harrison, University of Warwick; Stephen Broadberry; Nicholas Crafts, University of Warwick; Leigh Gardner, London School of Economics; Rocco Macchiavello, University of Warwick; Anandi Mani, University of Warwick; Christopher Woodruff, University of Warwick

Synopsis

The world’s poor are ‘trapped’ in poverty. How can we unlock development so that poor countries can sustain economic growth over long periods of time? Our report considers this problem on three levels, the national economy, the private sector, and citizenship. At the core of each chapter is new research by CAGE members and associates. Chapter 1 addresses the factors underlying sustainable growth of the national economy. Chapter 2 looks for the sources of business capacity and sustainable growth of the private sector. Chapter 3 links citizenship to economic development, showing how political voice can enable women to participate more freely in society and the economy.

In all three chapters we show how economic development relies on the rule of law, including a framework of laws and their enforcement that is applied to all and accessible by all. We show how, without such a framework, the sustainable growth of national economies and their businesses is threatened when laws fail to resolve conflicts. This failure is often accompanied by corruption or violence. So, we discuss what can be done to promote the rule of law; to make economic growth more stable and sustainable; to enhance the capacity of business organisations that are most likely to attract, grow and create jobs; and to enable women to play a full part in economic development as citizens, providers, and entrepreneurs.

Foreword by Frances Cairncross; Introduced by Nicholas Crafts.

Author Biographies

Mark Harrison, University of Warwick

Mark Harrison is Professor of Economics at the University of Warwick and Associate Director for Impact of Warwick’s ESRC Centre on Competitive Advantage in the Global Economy (CAGE). He is a research fellow of
the Centre for Russian and East European Studies at the University of Birmingham and of the Hoover Institution on War, Revolution, and Peace at Stanford University. His research interests lie in the history of Russia,
communism, conflict, and security, and the economics of fighting, cheating, stealing, lying, and spying.

Stephen Broadberry

Stephen Broadberry is Professor of Economic History at the London School of Economics and a research associate and theme leader of Warwick’s ESRC Centre on Competitive Advantage in the Global Economy (CAGE). He is an editor of the Economic History Review and a past editor of the European Review of Economic History. A past president of the European Historical Economics Society, he is currently a trustee of the Economic History
Association and the Asian Historical Economics Society, and an executive committee member of the Economic History Society. His research interests include the development of the world economy from 1000AD to the present; historical national accounts for Britain since 1086; the Great Divergence of productivity and living standards between Europe and Asia; sectoral aspects of comparative growth and productivity performance during the nineteenth and twentieth centuries; productivity in services; wars and economic performance.

Nicholas Crafts, University of Warwick

Nicholas Crafts FBA, CBE is Professor of Economic History and Director of Warwick’s ESRC Research Centre for Competitive Advantage in the Global Economy. His research interests include Britain’s Industrial Revolution and
relative economic decline, the history of general purpose technologies, and why growth rates differ. His career has included posts at the London School of Economics, Stanford University, the University of California at Berkeley, and the University of Oxford. He is a past president of the Economic History Society.

Leigh Gardner, London School of Economics

Leigh Gardner is Assistant Professor of Economic History at the London School of Economics. Her research focuses on the economic history of Africa and the British Empire. She is the author of Taxing Colonial Africa: The Political Economy of British Imperialism (Oxford University Press, 2012). Her current work compares the development of independent countries in Africa with their colonised neighbours in order to distinguish the effects of colonialism from more general constraints on development faced by peripheral countries before World War II. She is co-editor of the journal Economic History of Developing Regions and a book reviews editor of the Economic History Review.

Rocco Macchiavello, University of Warwick

Rocco Macchiavello is Associate Professor of Economics at the University of Warwick and a research associate of Warwick’s ESRC Centre on Competitive Advantage in the Global Economy (CAGE). He is an associate editor of the Journal of Development Economics. Rocco’s research interests mainly focus on the microeconomics of development. His recent projects investigate how exporters from developing countries acquire valuable reputations in foreign markets, and the upgrading of production process linked with international trade and agricultural value chains. He has done extensive field work in Bangladesh, Kenya and Rwanda. Before joining Warwick Rocco was a Post-Doctoral Research Fellow at Nuffield College, Oxford. He holds a PhD from the London School of Economics.

Anandi Mani, University of Warwick

Anandi Mani is Associate Professor of Economics at the University of Warwick and a research associate and capacity-building fellow of Warwick’s ESRC Centre on Competitive Advantage in the Global Economy (CAGE). She is also a research affiliate at Ideas42, a think tank for behavioural economics at Harvard University. Her research interests are in development economics, with a focus on the behavioural economics of poverty and social exclusion, gender issues and public good provision.

Christopher Woodruff, University of Warwick

Chris Woodruff is Professor of Economics at the University of Warwick and a research associate of Warwick’s ESRC Centre on Competitive Advantage in the Global Economy (CAGE). He is also a research associate of the National Bureau of Economic Research (NBER), a senior fellow of the Bureau of Research on Economic Analysis and Development (BREAD), and a research fellow of the Centre for Economic Policy Research (CEPR) and the Institute for the Study of Labour (IZA). He directs the Firm Capabilities group at the International Growth Centre and is Scientific Coordinator of the DFID–CEPR joint research venture on Private Enterprise Development in Low Income Countries (PEDL). He is a leading expert on enterprises in developing countries and a pioneer in the use of field experiments in understanding enterprise dynamics. His recent work includes measuring rates of return to capital investments in microenterprises, the effect of formal registration on enterprise performance, the use of business plan competitions to identify small enterprises with potential for rapid growth and the use of temporary wage subsidies to understand the willingness of micro-enterprises to expand employment. Geographically, his research spans a broad area of the developing world, including Mexico, Vietnam, Sri Lanka, Ghana and Eastern Europe.

Published

November 3, 2014