ABSTRACT
Economists interested in public policy have sought explanations for the great divergence in growth performance among developing countries in the choice of economic policies employed by governments. After half a century of experience with the theory and practice of economic development, economists and development practitioners confront the stark reality that on average the gap in per capita incomes between rich nations and poor nations is widening. The availability in the last decade of consistent data on such important economic variables as GDP, investment, and educational attainment for a wide range of countries has spawned a cottage industry in the economics profession exploring the determinants of long run economic growth. Governments in developing countries can in theory improve economic performance by acting as brokers of information and facilitators of mutual learning and collaboration. Effectiveness in the pursuit of economic goals is a necessary— but not sufficient— condition for public interventions to be socially beneficial.
