Making Poor Nations Rich: Entrepreneurship and the Process of Economic Development (Stanford Economics and Finance)
Why do some nations become rich while others remain poor? Traditional mainstream economic growth theory has done little to answer this question—during most of the twentieth century the theory focused on models that assumed growth was a simple function of labor, capital, and technology. Through a collection of case studies from Asia and Africa to Latin America and Europe, Making Poor Nations Rich argues for examining the critical role entrepreneurs and the institutional environment of private property rights and economic freedom play in economic development.
Making Poor Nations Rich begins by explaining how entrepreneurs create economic growth and why some institutional environments encourage more productive entrepreneurship than others. The volume then addresses countries and regions that have failed to develop because of barriers to entrepreneurship. Finally, the authors turn to countries that have developed by reforming their institutional environment to protect private property rights and grant greater levels of economic freedom.
The overall lesson from this volume is clear: pro-market reforms are essential to promoting the productive entrepreneurship that leads to economic growth. In countries where this institutional environment is lacking, sustained economic development will remain illusive.
Wide in scope, current and thorough, a bit dry
By Peter Lorenzi - September 12, 2008
An excellent text or required reading for a course in social entrepreneurship, if only for those students with a thorough grounding in economics. Covering entrepreneurial, wealth-creating activities around the world, "Making poor nations rich" provides a useful sampling of efforts to eradicate poverty not through aid or poverty assistance programs but instead through creative capitalism and social entrepreneurship. Another good example of going well beyond giving a person a fish and, instead, helping her start a sustainable business. Wealth transfer and re-distribution are insufficient if well-intentioned remedies and globalization, free trade, and even some creative destruction are much more benevolent for the poor than they are often painted.
Excellent documentation on how economic freedom creates prosperity
By Michael Strong "Flow Idealism" - May 27, 2011
In 1776 Adam Smith wrote a book on An Inquiry into the Nature and Causes of the Wealth of Nations in which he explained how and why Britain was becoming wealthy. The American founders took the book to heart, and as a consequence the 19th century saw Britain and the U.S. to become the first nations on earth in which the ordinary working man was able to enjoy an ever-more comfortable standard of living. Much of western Europe and then Japan managed to follow, until the anti-capitalists took over the universities in the 1920s and 30s. Sadly, after having known how to eliminate mass poverty for more than a hundred years, by 1950 most economists had become distracted by Keynes, socialism, or Marxism, such that as the former colonies became free they almost invariably implemented either a heavy-handed central government or outright Marxism. Powell's book is a wonderful contribution to the growing revival of real development economics, economics that can actually be used to create... read more
why some countries are poor and how they can be rich
By V.H. Amavilah "populi - the knowledge peddler" - March 1, 2008
"Making Poor Nations Rich" is a very good book. It consists of three main parts. The first part deals with institutions and entrepreneurship. The second part is about the importance of constrained entrepreneurship on economic development in Africa, Latin America, Scandinavia, and the transitional economies of the former USSR. The final part stresses the benefit of the reforms underlying the growth spurt in entrepreneurship in China and the Republic of Ireland, and the difficulties that challenge entrepreneurship in India, New Zealand, and Botswana.
If pressed to rank the sections of the book in descending order of their strengths, I would say: Foreword, Introduction, Part 1, Part 3, and Part 2. However, such an ordering is too subjective for a great book like this one. I give it 5-stars.
Amavilah, Author Modeling Determinants of Income in Embedded Economies ISBN: 1600210465