Kenan Karakülah

Four lessons for developing countries from advanced economies’ past

In this post, Izvorski and Karakülah contend that comparisons between today’s developing countries and today’s advanced economies can provide aspiration but less so in terms of recommendations about policies and institutions. Of greater value for developing countries are comparisons with advanced economies when they were less prosperous. Using government spending a century ago by 14 of today’s advanced economies, they highlight four lessons for developing countries.