ECON 6280 Lecture Notes - Lecture 5: Jeffrey Sachs, William Easterly, Indirect Rule
Document Summary
Econ 6280 class 5 case study: aid & development (africa) Some areas were more developed than others (nigeria, ghana, swahili towns, botswana) -> positive effects: the areas that are more developed today were more developed before colonization. Salve trade: interethnic raids (lack of trust today), economic geography (some groups moved to hilly terrains to protect themselves against slave raids -> higher trade cost today: colonial period. Identity of the colonizer (english = common law = more flexible vs. french = civil law = more rigid) The duration of colonization (e. g. puerto rico was a colony -> territory -> maybe become a. U. s. state vs. dominican republic was a colony but quickly became independent -> not faring as well as puerto rico) + invest in local system but more class/ethnic conflict (resentment)) Harro-domar & solow: save and invest -> growth, but if you are poor to being with, you can"t save and invest -> poverty trap.
