Ethnic diversity has a more adverse effect on economic policy and growth when a government's institutions are poor. But poor institutions have an even more adverse effect on growth and policy when ethnic diversity is high

One of the primary reasons that otherwise good politicians enact bad policies in countries all over the world, but especially in low-income countries, is that they face significant constraints in their efforts to bring about reform. These constraints, the "room for maneuver", are shaped by the...

Small states, no different from large states in income and growth, should receive the same policy advice large states do. Because of their greater openness, they may be more vulnerable to volatility in terms-of-trade shocks--but their openness pays off in growth

There may be a price to pay (in terms of inefficient coverage) if competition among health insurers is encouraged as a way to give patients greater choice and to achieve better control over insurance providers

Voters in India are more vigilant in monitoring government at the local than at the national level. In state assembly elections voters reward incumbents for local income growth, and punish them for a rise in inequality, over their entire term in office. But in national elections voters behave...