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1、InstitutionsMatter,butNotforEverythingTheroleofgeographyandresourceendowmentsindevelopmentshouldn’tbeunderestimatedJeffreyD.SachsHEDEBATEovertheroleofinstitutionsineco-tutionalshortcomings.Ratherthanfocusonimprovingnomicdevelopmenthasbecomedangerouslyinstitutionsi
2、nsub-SaharanAfrica,itwouldbewisetodevotesimplified.Thevagueconceptof“institutions”moreefforttofightingAIDS,tuberculosis,andmalaria;Thasbecome,almosttautologically,theintermedi-addressingthedepletionofsoilnutrients;andbuildingmoreatetargetforalleffortstoimproveanec
3、onomy.Ifanecon-roadstoconnectremotepopulationstoregionalmarketsomyismalfunctioning,thereasoninggoes,somethingandcoastalports.Inotherwords,sub-SaharanAfricaandmustbewrongwithitsinstitutions.Infact,recentpapersotherregionsstrugglingtodayforimprovedeconomicdevel-have
4、arguedthatinstitutionsexplainnearlyeverythingopmentrequiremuchmorethanlecturesaboutgoodgover-aboutacountry’slevelofeconomicdevelopmentandthatnanceandinstitutions.Theyrequiredirectinterventions,resourceconstraints,physicalgeography,economicpoli-backedbyexpandeddono
5、rassistance,toaddressdisease,cies,geopolitics,andotheraspectsofinternalsocialstruc-geographicalisolation,lowtechnologicalproductivity,andture,suchasgenderrolesandinequalitiesbetweenethnicresourcelimitationsthattraptheminpoverty.Goodgover-groups,havelittleornoeffec
6、t.Thesepapershavebeennanceandsoundinstitutionswould,nodoubt,makesuchwrittenbysuchrespectedeconomistsasDaronAcemoglu,interventionsmoreeffective.SimonJohnson,andJamesRobinson;DaniRodrik,ArvindSubramanian,andFrancescoTrebbi;andWilliamEasterlyWheneconomicgrowthfailsan
7、dRossLevine.WhenAdamSmith,ourprofession’soriginalandwisestcham-Indeed,asingle-factorexplanationofsomethingasimpor-pionofsoundeconomicinstitutions,turnedhiseyetothetantaseconomicdevelopmentcanbealluring,andtheinstitu-poorestpartsoftheworldin1776,hedidnotsomuchastio
8、ns-onlyargumenthasspecialallurefortwoadditionalmentioninstitutionsinexplainingtheirwoes.Itisworthreasons.First,itattributeshighincomelevelsintheUnitedqu
