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Sharing the Future: Financial Innovation and Innovators in Solving the Political Economy Challenges of Development

In: Institutions and Comparative Economic Development

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  • Saumitra Jha

    (Stanford Graduate School of Business)

Abstract

It is a familiar story. A new leader assumes authority in a country that has recently discovered that it has fallen behind its neighbours in economic development. He brings in foreign expertise, announcing a series of modernizing reforms that adopt what is perceived as best development practice and promises much in the way of social benefits. These include the establishment of schools and competitive exams based upon a modern curriculum, the abolition of sinecure positions in government, and the expansion of a system of railways and banks. However the reforms threaten the interests of existing elites. Within four months of the start of the reforms, these elites stage a coup, imprison the executive and rescind the changes. The country faces years of political unrest, civil war and revolution, at great human cost, before reforms occur.

Suggested Citation

  • Saumitra Jha, 2012. "Sharing the Future: Financial Innovation and Innovators in Solving the Political Economy Challenges of Development," International Economic Association Series, in: Masahiko Aoki & Timur Kuran & Gérard Roland (ed.), Institutions and Comparative Economic Development, chapter 7, pages 131-151, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-137-03401-4_8
    DOI: 10.1057/9781137034014_8
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    More about this item

    Keywords

    Political Economy; Secondary Market; Financial Innovation; Glorious Revolution; Parliamentary Control;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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