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4 Lessons for Developing Countries from Advanced Economies’ Past
Article

4 Lessons for Developing Countries from Advanced Economies’ Past


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Editorial Rating

7

Qualities

  • Analytical
  • Innovative
  • Overview

Recommendation

Economic mismanagement characterizes many of the poorest countries in the world. Even with substantial external aid, their public spending and investment significantly lag those of advanced nations. Officials in emerging markets can learn important strategies from the developed economies’ policies of a century ago, when they were emerging. This succinct and thoughtful analysis from researchers Ivailo Izvorski and Kenan Karakülah offer leaders in government and NGOs valuable insights on growth and prosperity. 

Take-Aways

  • Poor countries tend to insufficiently provide for their economic well-being and growth. They don’t take in enough revenue and so have less to spend and invest. 
  • Contrary to expectations, government receipts are lower and less stable in the resource-rich economies than in those that have fewer means. 
  • One hundred years ago, today’s advanced nations were emerging economies, and they can offer some helpful examples.

About the Authors

Ivailo Izvorski and Kenan Karakülah are with the Brookings Institution.