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D.C. Political Economy Seminar: Why is the Middle Income Trap a Trap? A Political Economy Perspective

Date: 02 Jun 2017

Time: 12:00 PM

Location: 1300 New York Ave., NW, Washington DC - Room Andres Bello 2, United States


Event open to the public (Prior registration required to enter the building)

The Research Department (RES) at the IDB and the Center for Latin American and Latino Studies of the American University invite you to the D.C. Political Economy Seminar:Why is the Middle Income Trap a Trap? A Political Economy Perspective, with presentation and discussion by Richard F. Doner (Emory University) and Ben Ross Schneider (MIT). 

Economists have identified the existence of a middle-income trap but have yet to analyze the politics of this trap.  The authors argue that countries in the mi trap face two major institutional and political challenges. First, the policies necessary to upgrade productivity—as in human capital and innovation—require enormous investment in institutional capacity. Second, these institutional challenges come just at the time when political capacity for building these institutions is weak due primarily to the fragmentation of potential support coalitions. Politics are stalled in particular by fractured social groups, especially business and labor, and more generally by inequality. These conditions resulted in large measure from previous trajectories of growth. The empirical analysis concentrates on nine of the larger MI  countries.

Blog for the Center for Latin American and Latino Studies by Rick Doner and Ben Ross Schneider

Blog  from the Council on Foreign Relations by Matthew M. Taylor 

Contact information: research@iadb.org

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