Modern political economy stresses"society's polarization"as a determinant of development outcomes. Among the most common dorms of social conflict are class polarization, and ethnic polarization. A middle class consensus is defined as a high share of income for the middle class and a low degree...

The estimated rates of return to education are typically (often considerably) above 10 percent a year in real terms - a respectable rate of return. The rates of return are highest for primary education, and higher in countries where educated manpower is scarcer, and the durability of educational...

In recent years, various Latin American governments have resorted to taxes on bank debits and financial transactions as alternative ways of raising revenue. Considerable interest has developed in understanding the consequences of such reforms. The author constructs a dynamic general equilibrium...

The authors investigate the relationship between weak growth performance and low investment rates in Africa. The cross-country evidence suggests no direct relationship. The positive and significant coefficient on private investment appears to be driven by Botswana's presence in the sample....

A look at the data reveals that in OECD countries, economic fluctuations exhibit a high degree of synchronization. In 1965-90, cross-country contemporaneous GDP growth correlations averaged 45 percent. This suggests that a central element of any theory of economic fluctuations should be an...

The authors rely on a series of growth accounting exercises to determine whether the growth rate of total factor productivity (TFP) or the unexplained portion of GDP growth (after controlling for the accumulation of capital per worker) in 18 Latin American and Caribbean economies has benefited...

World Bank economists routinely undertake projections of national accounts and balance of payments for their countries. These appear as part of the Bank's Country Strategy Papers. This note examines projections done during the 1983 - 85 period, and compares the projected levels of GDP, imports,...

This paper assesses the effects of knowledge on economic growth. By using an array of indicators, each of which represents an aspect of knowledge, as independent variables in cross-section regressions that span 92 countries for the period 1960 to 2000, they show that knowledge is a significant...

In 1966, 90 percent of the cocoa growing areas in Bahia, Brazil had trees more than 30 years old. By 1985 most of the area had been replanted or supplied with new trees. Throughout most of this period there were high or rising cocoa prices, and zero or negative interest rates. High prices and...

Are natural resources a blessing or a curse? The authors present a model in which natural resources have a positive effect on the level of income and a negative effect on its growth rate. The positive and permanent effect on income implies a welfare gain. There is a growth effect stemming from a...