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The Role of the State in Economic Development: Cross-Regional Experiences

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  • Collier, Paul

Abstract

The paper reviews two roles of the state: the provision of security and the regulation of economic activity. I show that in both respects until recently African governments provided a poor environment, and that this discouraged private investment. Recently, in parts of Africa the objective investment environment has improved. However, Africa's history is now a liability due to the perception of high risk on the part of investors. The paper considers various 'agencies of restraint', such as the WTO, whereby African governments can improve risk perceptions through policy commitment. Copyright 1998 by Oxford University Press.

Suggested Citation

  • Collier, Paul, 1998. "The Role of the State in Economic Development: Cross-Regional Experiences," Journal of African Economies, Centre for the Study of African Economies, vol. 7(0), pages 38-76, December.
    • Handle: RePEc:oup:jafrec:v:7:y:1998:i:0:p:38-76
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    Cited by:

    1. Richard Mash, 1999. "The Investment Response to Imperfectly Credible Trade Liberalisation with Endogenous Probability of Reversal," Economics Series Working Papers WPS/1998-13, University of Oxford, Department of Economics.
    2. Constantino J. Gode, 2001. "Sovereign Debt and Uncertainty in the Mozambican Economy," WIDER Working Paper Series DP2001-130, World Institute for Development Economic Research (UNU-WIDER).
    3. Janine Aron & Ibrahim Elbadawi, 1999. "Reflections on the South African rand crisis of 1996 and policy consequences," Economics Series Working Papers WPS/1999-13, University of Oxford, Department of Economics.
    4. Leger, Andreanne, 2005. "Intellectual Property Rights and Their Impacts in Developing Countries: An Empirical Analysis of Maize Breeding in Mexico," Institutional Change in Agriculture and Natural Resources Discussion Papers 18835, Humboldt University Berlin, Department of Agricultural Economics.
    5. Janine Aron & Ibrahim Elbadawi, 1999. "Reflections on the South African rand crisis of 1996 and its consequences," CSAE Working Paper Series 1999-13, Centre for the Study of African Economies, University of Oxford.

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