Why States Matter in Economic Development

1 Introduction

DOI: 10.4324/9781003044123-1

1.1 Introduction

Why are there different qualities of states in the world? Why are some state administrations professionally managed – from the smallest mundane experience of getting one’s drivers’ license to more sophisticated development projects for coordinating several industries, to building a bridge or a car industry – are executed efficiently with little or no bribery or corruption? While on the other hand many states in the Third World bungle the smallest state functions, like clean water or vital services like primary school for all children (as it is their human right), to the larger projects of building dams or urban housing. Most recently, the COVID-19 pandemic has unraveled the capacities ...