"Attracting financial capital is essential for economic growth in developing countries, but can often tragically foster nondemocratic politics. Consider, for example, the impact of foreign aid. Since 2008 Ethiopia has been one of the largest recipients of U.S. aid in Africa, averaging around $80...

All rulers face political competition, both from rivals within their state, and from other states to which their subjects may exit. In a simple model, both kinds of competition are substitutes. Internal competition (democracy) benefits citizens by allowing them to replace rent-seeking rulers....

Setting the stage : the Amazon as a horizon -- The making of a model ranch (1973-1976) -- Development in the age of scarcity (1976-1983) -- Out-of-date modernity : forced labor at Cristalino (1983-1986) -- Cristalino's unhappy ending