Rethinking Economic Development Policy: The Emergence of Challenges in the Modern Era

What lies ahead for the design of policies intended to promote economic development, particularly among low-income countries? The traditional goal of encouraging the development of appropriate public fundamentals, to include modern infrastructure, enlightened institutions, and human capital formation are as essential as ever. However, they cannot, of themselves, be counted on to gain the needed foreign direct investment in physical capital that is critical for industrialization to take place.

Roads or Schools: A Critical Tradeoff

This piece first published on the IMF blog (November 9, 2017). Roads or schools? It’s a question akin to the “guns or butter” choice that governments around the world confronted in the 20th century: How to spend a nation’s finite resources to produce the maximum benefit for its people. In our recent IMF Working Paper, we find …