Like Crabs in a Bucket - by Raghuram G. Rajan
Why do poor countries remain stubbornly underdeveloped? Growing consensus indicates that poor countries lack the necessary institutions — or worse, have the wrong institutions for economic growth. The IMF's Raghuram Rajan argues that citizens in poor countries all too often become like crabs in a bucket — preventing each other from getting out.
It seems that reforms reducing inequalities in factor endowments — like land — and those improving access to education and finance can strengthen the constituencies for broader economic liberalization.
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