This leads to a different way of asking the big questions, one that is not grounded
in any presumption of convergence. The starting point is that two economies with
the same fundamentals can move apart along very different paths. Some of the bestknown
economists writing on development in the first half of the twentieth century were
instinctively drawn to this view: Young (1928), Nurkse (1953), Leibenstein (1957) and
Myrdal (1957) among them.
Historical legacies need not be limited to a nation’s inheritance of capital stock or GDP
from its ancestors. Factors as diverse as the distribution of economic or political power,
legal structure, traditions, group reputations, colonial heritage and specific institutional
settings may serve as initial conditions — with a long reach. Even the accumulated
baggage of unfulfilled aspirations or depressed expectations may echo into the future.
Factors that have received special attention in the literature include historical inequalities,
the nature of colonial settlement, the character of early industry and agriculture,
and early political institutions.
This leads to a different way of asking the big questions, one that is not groundedin any presumption of convergence. The starting point is that two economies withthe same fundamentals can move apart along very different paths. Some of the bestknowneconomists writing on development in the first half of the twentieth century wereinstinctively drawn to this view: Young (1928), Nurkse (1953), Leibenstein (1957) andMyrdal (1957) among them.Historical legacies need not be limited to a nation’s inheritance of capital stock or GDPfrom its ancestors. Factors as diverse as the distribution of economic or political power,legal structure, traditions, group reputations, colonial heritage and specific institutionalsettings may serve as initial conditions — with a long reach. Even the accumulatedbaggage of unfulfilled aspirations or depressed expectations may echo into the future.Factors that have received special attention in the literature include historical inequalities,the nature of colonial settlement, the character of early industry and agriculture,and early political institutions.
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