Saturday, October 02, 2010

Good Bureaucracy Is Important for Development

Tim Harford posts on the ways in which past history impacts economic development, citing several research reports.  From his post:
Berger argues that the 7° 10’ line of latitude in Nigeria is important because different systems of taxation once prevailed on either side of it. To the south, officials relied on customs duties and other taxes on trade through Nigeria’s ports. North of the line, taxes were levied on people – which meant somebody had to arrange a census and keep proper accounts. The difference in bureaucratic capability has persisted for a century

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