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Institutions, Social Norms and Economic Development (Hardcover)
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Institutions, Social Norms and Economic Development (Hardcover)
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In order for economic specialization to develop, it is important
that well-defined property rights are established and that
suspicion and fear of fraud do not pervade transactions. Such
conditions cannot be created ex abrubto, but must somehow evolve.
What needs to develop is not only suitable practices and rules
themselves, but also the public agencies and moral environment
without which generalized trust is difficult to establish. The
cultural endowment of societies as they have developed over their
particular histories is bound to play a major role in this regard,
and the matter of cultual endowment is one of the central themes of
this book.
On the other hand, division of labour does not only require
well-enforced property rights and trust in economic dealings. It is
also critically conditioned by the thickness of economic space,
itself dependent on population density. This provides the second
major theme of the volume: market development, including the
development of private property rights is not possible, or will
remain very incomplete, if populations are thinly spread over large
areas of land. The book makes special reference to sub-Saharan
Africa.
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