Economic development is dependent on the deal between elites of a country. In most poor countries, elites choose to extract resources from the economy because the policies that lead to development can endanger their political position.
When elites decide to have pro-growth policies, they’re taking a risk that it will work out and benefit them personally. Most elites do not want to take this risk, and would rather enjoy the spoils of corruption instead.
This is a lengthy review with a lot to unpack.
There is a lot of emphasis on “the elite” as being the primary driver for economic development. I wonder, do they have a specific definition for who “the elite” are (aside from being exceptionally wealthy?) I suppose that might vary from country to country.
Usually, elites take a dim view of economic growth. They might be fans of the idea that they control a more powerful country, but they usually don’t like the means it takes to get there. The problem from the elites’ perspective is that the policies which are required for development are damaging to their interests.
I would assume their interests here are self-preservation. Greater economic development is usually correlated with an expanded middle class which has more money influence.
I guess its mostly right on a surface level for developing economies. but i think it missing some other factors. People’s identities and personal beliefs (relgion etc) play a big part in what they will accept.
Idk it might put too much emphasis on elites controlling things. I think they definitely do, but only to an extent.
