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State capacity and development clusters
Evidence from 25 years of data shows countries form persistent ‘development clusters’ according to their levels of internal peace and state capacity Over 260 years ago, Adam Smith famously said "Little else is required to carry the state to the highest degree of opulence from the lowest barbarism, but peace, easy taxes, and a tolerable administration of justice, all the rest being brought about by the natural course of things." This recipe for prosperity has two essential ingredients.
State capacity and development clusters
The determinants of economic development have been debated for many years. However, some of these determinants have been hard to measure internationally. This column reviews evidence from 25 years of data to argue that countries form persistent ‘development clusters’ according to their levels of internal peace and state capacity.
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