What overall combination leads to good long-run economic growth, according to Robinson?

What overall combination leads to good long-run economic growth, according to Robinson?

• A. Niche specialization and industry regulation
• B. Broad politics and high state capacity
• C. International collaboration and trade
• D. Technological adoption and market expansion

Answer: (B)

The choice of broad politics and high state capacity as the combination that leads to good long-run economic growth is rooted in the understanding that effective governance and political stability provide a solid foundation for economic activities. Broad politics refers to an inclusive political environment where various stakeholders are engaged in the decision-making process, which helps in creating policies that benefit a wider segment of the population. This inclusivity fosters social cohesion and reduces the risks of political instability that can hinder economic progress. High state capacity, on the other hand, means that the government has the ability to effectively implement policies, manage public resources, and maintain law and order. A state with high capacity can efficiently invest in infrastructure, education, and health, which are essential for creating an environment conducive to economic growth. Furthermore, such a government can provide the necessary legal and regulatory frameworks that are critical for businesses to thrive. When these two elements work in tandem, they create a stable environment that encourages investment, innovation, and entrepreneurship, all of which are crucial for sustained long-term economic growth. In contrast, the other combinations listed may not sufficiently address the complexities of governance and institutional strength necessary for robust economic advancement.

The choice of broad politics and high state capacity as the combination that leads to good long-run economic growth is rooted in the understanding that effective governance and political stability provide a solid foundation for economic activities. Broad politics refers to an inclusive political environment where various stakeholders are engaged in the decision-making process, which helps in creating policies that benefit a wider segment of the population. This inclusivity fosters social cohesion and reduces the risks of political instability that can hinder economic progress.

High state capacity, on the other hand, means that the government has the ability to effectively implement policies, manage public resources, and maintain law and order. A state with high capacity can efficiently invest in infrastructure, education, and health, which are essential for creating an environment conducive to economic growth. Furthermore, such a government can provide the necessary legal and regulatory frameworks that are critical for businesses to thrive.

When these two elements work in tandem, they create a stable environment that encourages investment, innovation, and entrepreneurship, all of which are crucial for sustained long-term economic growth. In contrast, the other combinations listed may not sufficiently address the complexities of governance and institutional strength necessary for robust economic advancement.