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Nietzschean Development Failures

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  • Arye L. Hillman

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Abstract

Government policies, and substantial external resources and technical assistance provided over the course of decades, have neither eliminated broad poverty nor resulted in equitable income distributions in the poorer countries of the world. This paper explains the development failures with reference to Nietzschean behavior where the strong act without ethical restraint and the rule of law does not protect the weak. While Nietzschean behavior violates principles of social justice, there are also inefficiencies. The Nietzschean strong who rule have no incentive to adopt efficiency-enhancing policies. Efficiency in a Nietzschean society is also greater, the higher the leisure preference of the weak and the less the weak are capable of producing. Labor productivity is low because the weak do not consistently work. These are the outcomes when the strong behave as roving bandits. When the strong behave as stationary bandits, efficiency is enhanced but income distribution can be expected to remain unequal. The Nietzschean perspective on development failure is compared with alternative explanations for the sustained plight of the poor in poor countries and the unequal distributions of income and wealth.

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 119 (2004)
Issue (Month): 3_4 (06)
Pages: 263-280

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Handle: RePEc:kap:pubcho:v:119:y:2004:i:3_4:p:263-280

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Web page: http://www.springerlink.com/link.asp?id=100332

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Cited by:
  1. Niklas Potrafke, 2010. "Islam and Democracy," Working Paper Series of the Department of Economics, University of Konstanz 2010-10, Department of Economics, University of Konstanz.
  2. Rapha´┐Żl Franck & Arye Hillman & Miriam Krausz, 2005. "Public Safety And The Moral Dilemma In The Defense Against Terror," Defence and Peace Economics, Taylor & Francis Journals, vol. 16(5), pages 347-364.
  3. Beekman, Gonne & Bulte, Erwin H. & Nillesen, Eleonora E.M., 2013. "Corruption and economic activity: Micro level evidence from rural Liberia," European Journal of Political Economy, Elsevier, vol. 30(C), pages 70-79.
  4. Arye Hillman, 2007. "Economic and security consequences of supreme values," Public Choice, Springer, vol. 131(3), pages 259-280, June.
  5. Dreher, Axel & Kotsogiannis, Christos & McCorriston, Steve, 2007. "Corruption around the world: Evidence from a structural model," Journal of Comparative Economics, Elsevier, vol. 35(3), pages 443-466, September.
  6. Cooray, Arusha & Potrafke, Niklas, 2011. "Gender inequality in education: Political institutions or culture and religion?," European Journal of Political Economy, Elsevier, vol. 27(2), pages 268-280, June.
  7. Niklas Potrafke, 2013. "Policies against Human Trafficking: The Role of Religion and Political Institutions," CESifo Working Paper Series 4278, CESifo Group Munich.
  8. Gonzalez, M. & Wen, W., 2007. "The Supply of Social Insurance," Cambridge Working Papers in Economics 0772, Faculty of Economics, University of Cambridge.
  9. Arye Hillman, 2009. "Hobbes and Samuel: reply," Public Choice, Springer, vol. 141(1), pages 13-15, October.
  10. Bjornskov, Christian & Bogetic, Zeljko & Hillman, Arye & Popovic, Milenko, 2014. "Trust and Identity in a Small, Post-Socialist, Post-Crisis Society," EconStor Preprints 95968, ZBW - German National Library of Economics.
  11. Dorothee Schmidt, 2005. "Morality and Conflicts," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2005_12, Max Planck Institute for Research on Collective Goods.
  12. Rosenberg, Jacob & Weiss, Avi, 2012. "Property rights and institutions in biblical society: The purchase of the Cave of the Patriarchs," European Journal of Political Economy, Elsevier, vol. 28(3), pages 279-285.
  13. Rogers, Douglas B. & Smith, Adam C. & Wilson, Bart J., 2013. "Violence, access, and competition in the market for protection," European Journal of Political Economy, Elsevier, vol. 29(C), pages 1-17.
  14. Hillman, Arye L., 2010. "Expressive behavior in economics and politics," European Journal of Political Economy, Elsevier, vol. 26(4), pages 403-418, December.

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