Political economy of growth, keys for its understanding
The countries of the North Atlantic, Scandinavia, and Japan, are 30 times richer than the countries of the Sub-Sahara. Latin America is between five and six times poorer than the rich countries, and between four and five times richer than the poor countries.
Within Latin America, the differences are almost as enormous as in the rest of the world: South America and Mexico are 60 percent richer than the countries of Central America, and while some countries in South America are increasingly closer to rich countries with respect to material wellbeing, some in Central America have for decades been unable to differentiate themselves from the poorest economies in Africa.
These are some of the subjects addressed in the new book of the series "Estado, Gestión Pública y Desarrollo en América Latina" (State, Public Management, and Development in Latin America), entitled ¿Qué explica los grandes contrastes entre las economías nacionales? (What explains the enormous contrasts between the national economies?) This volume compiles the answers of contemporary Political Economics. Its chapters are texts that take the essential ideas to the frontiers of the discipline. It is also part of the bibliography in the Governance and Leadership Programs developed by CAF, Development Bank of Latin America in nine countries of Latin America through 18 academic centers, and of the PhD Political Science Program at the Universidad Nacional San Martin of Argentina.
The answers of contemporary Political Economics start from a triple consensus resulting from the accumulated knowledge since the classic works of Smith, Ricardo, Marx, and Weber, which, at the same time, motivate the current triple debate. We know with certainty that better technology and investments in physical and human capital are close causes of development, but we debate whether the most essential deeper causes are geographic, cultural, or institutional.
We know that the free market is a powerful driver of prosperity in many cases, but we do not know under what conditions the market achieves its effects, or which are the best solutions when countries lack the conditions that make the markets effective. We know that the political institutions condition the effect of all the other causes, whether close or essential, including the market, but we do not know exactly how it is done or by means of what mechanism. This volume, "Economía Política del Crecimiento, cadenas causales y mecanismos institucionales" (Political Economy of Growth, causal chains and institutional mechanisms), contains the keys to understand both the consensus as well as debates regarding the Political Economics of growth.
The series "Estado, Gestión Pública y Desarrollo en América Latina" (State, Public Management, and Development in Latin America), a CAF promoted initiative, consists of a selection of texts aimed at strengthening the understanding and implications that the functioning of the State and institutions in Latin America have on development. The selected texts were translated to Spanish and are organized with a logic that facilitates information regarding the foundations of the international theoretical debate focused on these issues, as well as show the analysis of significant experiences in our societies and other latitudes, seeking to disseminate this knowledge in our region.
CAF, as an institution dedicated to the promotion of development, provides a new editorial collection to those who actively participate in public management, as well as academics, students, and other parties interested in this subject, with the purpose of supporting them in the process of understanding, designing, and implementing public policies associated with institutional quality and development in their countries.
To download the digital version of "Economía Política del Crecimiento, cadenas causales y mecanismos institucionales", click here: http://scioteca.caf.com/handle/123456789/794
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