State

State
Of

State
For

Development

West, west, west:

Westerners

&

srn
etR
s
e

1776

China seems to have been long stationary, and

had probably long ago acquired that full
complement of riches which is consistent with
the nature of its laws and institutions. But this
complement may be much inferior to what, with
other laws and institutions, the nature of its soil,
climate, and situation might admit of.

Adam Smith Wealth Of A Nation (1776)

Development

Technological Serendipity:
1) Ability To Kill: Weapons
2) Ability To preserve Life: Preventive
Medicine
3) Ability To produce Food & Industrial
Goods
4) Improvements in transportation &
Communication

Key Pillars of Western Civilization:

1)
2)
3)
4)

Democracy
Capitalism
Rule Of Law
Civil Society

Degenerating

1)
2)
3)
4)
5)
6)

Economic Competition
The Scientific Revolution
Property Rights
Modern Medicine
The Consumer Society
Work Ethic

Hernando De Soto:
The poor of the world have a surprisingly large amount of
property yet it is held extra-legally.
The taxes they pay are protection rackets.
Legally impossible
Establishing a small garment shop on outskirts of Lima -> 289
days
Building a house on state owned land -> 6 yrs 11 months and 52
government offices changes.

Institutions Matter

A Spacious Hive well stock'd with Bees,

That lived in Luxury and Ease;
And yet as fam'd for Laws and Arms,
As yielding large and early Swarms;
Was counted the great Nursery
Of Sciences and Industry.
No Bees had better Government,
More Fickleness, or less Content.
They were not Slaves to Tyranny,
Nor ruled by wild Democracy;
But Kings, that could not wrong, because
Their Power was circumscrib'd by Laws.

The Grumbling Hive - By Bernard Mandeville

Society is indeed a contract The state Is A

Partnership not only between those who are
living, but between those who are living, those
who are dead, and those who are to be born.
Edmund Burke

Thank