Sub-Saharan Africa has received tens of billions of dollars in foreign aid over the last fifty years yet economic development has remained elusive. In many countries absolute poverty has increased and life expectancy has declined.

Karol Boudreaux and Paul Aligica argue that the results of traditional approaches to development policy have been disappointing. Instead, the focus needs to be on the adoption of sound political and legal institutions. In particular, clearly defined and enforced private property rights are needed to encourage entrepreneurship and economic growth. However, institutional environments in Africa are both complex and challenging, and the creation of secure property rights is far from a straightforward process.

The authors examine several case studies of property rights reform in the developing world and suggest that universal policies applied regardless of local culture and tradition tend to fail. Reforms are more likely to succeed when they evolve gradually and are tailored to local norms and values rather than imposed from above by governments, aid agencies and supranational institutions.

 

This publication is part of the ongoing Enterprise Africa! project financed by the Templeton Foundation.
2007, Hobart Papers 162, ISBN 978 0 255 36582 6, 113pp, PB
See also:

Half a Cheer for Fair Trade, a critical examination of the Fair Trade movement, by Philip Booth and Linda Whetstone.

Understanding the Process of Economic Change, a short introduction to the New Institutional Economics by Nobel laureate Douglass C. North.

Fullscreen Mode