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Economics

Explaining Variation in State Capacity and Its Effects on Development

Quick fact

Countries with effective state capacity, such as South Korea and Botswana, have far outperformed resource-rich but poorly governed states like the Democratic Republic of the Congo, despite having fewer natural resources.

Why this is interesting

Have you ever wondered why some countries are rich while others, even with abundant resources, remain poor? One key answer lies in the invisible hand of government: state capacity.