Monday, August 31, 2015

Some long reads about development

From Brad DeLong Weakend reading: An interview with Josiah Ober, author of The Rise and Fall of Classical Greece:
"The new data allows us to test the robustness of contemporary theories of political and economic development. In the classical Greek world, political development was a primary driver of economic growth; democracy appears to be a cause rather than simply an effect of prosperity. The steep rise and long duration of the city-state ecology offers a challenge to neo-Hobbesian centralization theories of state formation, which hold that advanced economic and political development requires the consolidation of centralized state power. The comparatively low rate of ancient Greek income inequality, along with the high rate of economic growth, suggests that the negative correlation of sustained growth with extreme inequality, observed in some recent societies, is not a unique product of modernity. Finally, the history of the ancient Greek world can be read as a cautionary tale about the unanticipated consequences of growth and human capital investment: It reveals how innovative institutions and technologies, originally developed in the open-access, fair-rules context of democratic states, can be borrowed by ambitious autocrats and redeployed to further their own, non-democratic purposes."

From Chris Blattman :
"In the US, subsidies for people to move from poor neighborhoods to better ones had positive long term outcomes (PDF) but Barnhardt, Field, & Pande find in India, taking people away from their social support networks is very disruptive and many people refused or left the program (PDF)."

The first Moving to opportunity Abstract: Neighborhoods matter for the well-being of residents. Helping families with young children living in high-poverty housing projects to move to lower-poverty neighborhoods improves the later-life outcomes for the children and may reduce the intergenerational persistence of poverty.

The second Moving to opportunity or isolation? Network effects of a Randomized Housing Lottery in Urban India Abstract: A housing lottery in an Indian city provided winning slum dwellers the opportunity to move into improved housing on the citys periphery. Fourteen years later, relative to lottery losers, winners report improved housing farther from the city center, but no change in family income or human capital. Winners also report increased isolation from family and caste networks and lower access to informal insurance. We observe significant program exit: 34% of winners never moved into the subsidized housing and 32% eventually exited. Our results point to the importance of considering social networks when designing housing programs for the poor.

P.S I am not sure whether it works the same way in South India. May be the clue to the difference of U.P. from USA and South India may be in family systems, as Emmanuel Todd would say.

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