Published online by Cambridge University Press: 09 July 2021
Chapter 7 first summarizes the book and assesses the conditions under which government threats will motivate private good governance. The second half of the chapter considers the policy implications of the book’s findings. It proposes that private governance – and, in turn, economic development – is best supported not by an absentee state or by massive state intervention in trade. Rather, a middle ground is ideal. It argues that regardless of one’s assumptions about how economic growth in private groups shapes the broader economy, since private groups control a massive portion of most economies, growth within these groups is important for its own sake.
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