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This book offers a critical analysis of the European Union’s Cohesion Policy and its structural and investment funds. These instruments, aimed at reducing regional disparities and fostering growth, distribute billions annually to poorer EU regions. While rooted in noble intentions, evidence of their effectiveness is limited and inconclusive. I argue that this policy’s utopian vision is unattainable and that its implementation has become a major factor behind Europe’s economic stagnation, political malaise, and demographic challenges. Rather than promoting innovation and competitiveness, structural funds often perpetuate dependency and misallocation, undermining the EU’s long-term stability. Drawing on academic literature, media sources, and case studies – particularly from Portugal, Greece, southern Italy, and post-communist Member States – this book calls for the termination of these subsidies and a fundamental rethinking of EU priorities. It seeks to open a rigorous debate on the root causes of Europe’s decline and the urgent need for institutional reform to secure the Union’s future.
The Epilogue summarizes the obstacles encountered, as well as the advances achieved, during the emergence of banking in Latin America from independence in the early nineteenth century down to the first decade of the twentieth century. This history is described as part of a long phase of slow capitalism that, eventually, led to faster economic growth and some convergence with more advanced nations, albeit subject to diverse trajectories. The Epilogue also raises questions regarding the building of authentic banking systems from the early twentieth century onwards, as well as the establishment of central banks from the 1920s and 1930s.
This article looks at the deregulation of US prison labor in the 1970s and 1980s, and the use of prison labor in information technology (IT) and digital electronics supply chains. The article, on one hand, locates the effort to deregulate prison labor in US electronics firms’ search for cheap labor enclaves and the uneven development of the postwar United States. At the same time, the article situiates this deregulatory turn in the progressive reforms of the 1970s. These reforms, which occurred first at the state and local levels, sought to promote prisoner welfare, provide opportunities for “self-help,” and rationalize the allocation of state and local resources in light of rising inflation. As such, the article complicates narratives of the rise of neoliberalism, which center issues like “lost confidence” in the efficacy of federal social welfare programs, breaches in public trust following Watergate, the 1973 oil shock, knock-on effects of New Deal and Great Society programs, or emerging “family values” and racist dog-whistle politics. It also frames the labor history of digital electronics in a way that supports an analysis of the relationship between capitalist development and US federalism aongside the particularities of firm-level motivation, insitutional inertia, and prevailing political ideology. Current discussions of Artificial Intelligence (AI) and corrections largely focus on the use of incarcerated persons to train AI algorithms or the use of AI systems to surveil prisoners. However, this article centers the growth of tech supply chains in the 1970s and 1980s as an important precursor to the development of contemporary AI technology and firms.
This paper develops a unified framework combining corrected National Accounts, dynamic social tables, and capital-income allocation to reconstruct long-run inequality, allowing the calculation of overall inequality, labor inequality, and extended-income inequality. The evidence indicates a decline in overall inequality alongside a contrasting rise in labor inequality from the late 1950s to 1970. However, oil-price shocks after 1973 had distributionally asymmetric and non-linear effects on overall inequality, whereas labor inequality exhibits a sign-dependent response. Furthermore, in-kind transfers in education and health substantially lowered overall inequality. Nevertheless, oil wealth did not function as a sustained equalizing force; post-1970s rent volatility, institutional weaknesses, and labor-market fragmentation reinforced a distributional regime in which gains concentrated at the top during booms while losses were widely shared during slumps. The Venezuelan case illustrates how reliance on publicly owned natural resources, absent strong institutions and policies, can evolve into a persistent growth and distributional failure.
Lives are comprised of the stories we tell. At the beginning of this chapter, I argue for the importance of understanding how narratives not only mirror but also shape our understanding of ourselves and others. I draw on classic and contemporary research in social and cultural psychology to show how narratives are remembered and transformed over time and between people. I also discuss master narratives – dominant stories that help create shared understanding and cohesion in societies. I then introduce two dominant master narratives concerning economic development. The first highlights growing inequality and its detrimental impact on societies. The second emphasizes that, despite the vices of capitalism, economic growth has led to increased prosperity. I situate these narratives in the contemporary political and academic zeitgeist, where inequality dominates. I end the chapter by discussing the moral imperative to alleviate global poverty, create fairer societies, and pursue human capabilities as a guide for rethinking economic development.
In this chapter, we trace the history of how the EU emerged as a leader in using development aid and diplomacy to restrict migration, particularly from Africa. We also broadly describe the scope of migration management projects, including their intended impact on state capacity, economic development, a country’s domestic governance including civil society, and the return of a country’s nationals via forced and voluntary repatriation. We then turn to the EUTF, analyzing where and how the EU spent more than €5 billion across the African continent. We explore which actors benefited the most, what projects received the most funding, and where these interventions had the most impact. Overall, the EUTF prioritized state capacity, security, and economic development, while civil society and other non-state actors received significantly smaller allocations.
Amid ecological civilization construction, coordinating environmental protection and economic development across administrative jurisdictions is increasingly urgent. As an important institutional arrangement for balancing inter-regional ecological interests, the effectiveness of the horizontal river basin ecological compensation policy is crucial for future watershed protection policy design. Based on a theoretical model, this study uses the multi-period difference-in-differences method to examine the policy's environmental and economic impacts on 529 county-level units in the Yellow River Basin. Results show that first, the policy significantly reduces pollutant emission intensity and promotes green economic growth in compensated regions. Second, it achieves environmental–economic synergy through industrial upgrading, technological innovation and energy conservation. Third, the synergy effect is stronger in areas with severe water pollution, gentle terrain and non-poverty status. Finally, fiscal transfer payments and human capital accumulation positively moderate this synergy. This study provides new implications for watershed governance and ecological compensation policy.
Mongolia is often cited as a post-communist democratic success, yet its mineral wealth has not produced broad-based development. This article explains the paradox through the limited-access order framework of North, Wallis, and Weingast, arguing that a formally open polity coexists with an economy in which rents remain captured by a dominant coalition. Tracing the extractive sector across three stages – privatization (1990–1997), resource-nationalist contestation (1998–2012), and investor-protection rebalancing (2013–present) – it shows how three external mechanisms operating in sequence – international financial institutions, foreign direct investment, and transnational legal ordering – successively reshaped the rent structure and the coalition. Following the capacity of non-elite actors to contest rent distribution, substantive openness peaked in the 2000s and then narrowed sharply as economic policy was insulated from democratic pressure. Mongolia thus shows how mineral rents and external actors entrench limited-access logic rather than dissolving it.
This article examines East German experts’ participation in development projects in Mongolia and their conceptions of environments during the Cold War. Starting in the 1950s, East Germany (German Democratic Republic, GDR) and Mongolia intensified economic ties that aimed to industrialise Mongolia and align with communist objectives. The endeavours were intended to provide development aid, though they also provided the GDR with access to natural resources it could not obtain domestically. Drawing on sources from numerous German archives, this article argues that East German development projects followed broader patterns of exploitation and consumption between Europe and the Global South after the Second World War. Communist trade relations dissolved with the end of the Cold War, but they set the stage for trade and environmental impacts that have continued to this day.
Why do some countries grow while others remain mired in poverty? This chapter investigates global inequality and the role of institutions in shaping growth. It shows that markets alone cannot guarantee shared prosperity. Effective governance and adaptive institutions are critical for channeling growth into opportunity. Through case studies and empirical data, it contrasts inclusive and extractive models of development.
While most literature focuses on the successes of developed economies or critiques socialist regimes, it often neglects how to adapt capitalism to the specific needs of developing nations. Gabriel Cepaluni's Capitalism and Development explores capitalism's role in driving economic growth and political stability in developing countries. He draws on vivid stories from São Paulo to Seoul to show how thoughtful regulation, rule-of-law safeguards and strategic public investment can steer capitalism toward broad prosperity without smothering innovation. Offering a fresh perspective on adapting principles to meet the unusual challenges of developing economies, he suggests a balanced approach, combining free-market competition with social protection, advocating inclusive capitalism. Examining empirical evidence and theoretical insights on implementing these principles, he addresses global economic inequality, critiques existing literature, and proposes innovative public policies. Contrasting Latin America's struggles with East Asia's successes, Cepaluni provides a compelling guide for democracies that endure and a planet that thrives.
This Element argues that settlers from Western Europe shaped European state formation and transformed the political and economic fate of Eastern Europe and Scandinavia between 800 and 1800. While existing work on European colonization focuses on overseas settlers, and studies of Europe's development tend to concentrate on the continent's western regions, the Element highlights a significant internal wave of settlement from Western to Eastern and Northern Europe. Beginning around 1100 and tapering off after 1400, this settler movement spurred economic development and the spread of local self-government across Eastern Europe and Scandinavia. Settlers also provided institutional templates that local rulers adapted in their efforts to build states. These rulers were increasingly compelled to bargain with politically autonomous and large cities. Over time, the emergence of new states in Eastern Europe intensified geopolitical competition across the continent.
Economic and geospatial drivers of conflict are established, yet aggregate analyses often obscure subnational risk patterns. This study develops a high-resolution risk methodology for fragile, resource-rich states by combining spatial econometrics with the greed-grievance framework. Using a Bayesian approach based on integrated nested Laplace approximation and stochastic partial differential equations, we examine how socio-economic development, natural resources, energy infrastructure, and 14 spatial variables shape four conflict typologies in Nigeria between 1997 and 2023. Results show that wealth reduces conflict risk, while ethnic fractionalization and proximity to resources have actor-specific effects. Petroleum endowments and power infrastructure increase organized rebel and militia activity, whereas ethnic dynamics mainly drive riots. Predictive risk maps support infrastructure planning, supply chain risk mitigation, and targeted stabilization policies.
This chapter concerns international environmental law. It commences with a consideration of an argued human right to a clean environment and the increasing case law on this issue. The relationship between economic development and environmental protection is also addressed, before the key question of state responsibility is surveyed. The appropriate standard, whether or not actual damage is caused, the question of transboundary harm arising from hazardous activities, environmental impact assessments, the precautionary and polluter-pays principles are examined before turning to the range of international treaties on this topic. The question of atmospheric pollution is addressed before the chapter turns to a consideration of climate change and the various international instruments concerning this, including the important Paris Agreement of 2015. Environmental issues and outer space are then discussed, followed by a section on international watercourses and one on ultra-hazardous activities. Questions as to the requirements for the provision of information and assistance are covered.
Although oil is not the only potential source of rent from the rest of the world for contemporary states, it is by far the most important. The increase in oil prices post 1970 facilitated the emergence of rentier states, especially, but not exclusively, in the Gulf region, hugely increasing the volume of the rent at their disposal. This allowed consolidation of political regimes which otherwise would probably not have survived, and gave power holders an unprecedented degree of autonomy from their societies. The chapter then explains how the rentier state needs to engage in large-scale public expenditure to circulate the rent domestically, nurture a private sector and promote economic development along a peculiar model of its own. In order to counter the phenomenon known in economics as the ‘Dutch Disease’, the Gulf states have opened their doors to massive temporary immigration of foreign workers, creating a very peculiar labour market structure which has ended up damaging the opportunities for productive employment available to nationals, especially the young. This model must now be overcome, but while some states are in a position to remain rentiers, thanks to large accumulation of financial resources, others face an eroding oil rent and the need to increase domestic taxation to pay for their ever-increasing expenditure. Increasing reliance on taxation of nationals is inevitably coupled with increasing demand for accountability, which will eventually need to be accommodated through political reform.
What repressive strategies do dictators use to maintain regime stability as anti-government movements rise under conditions of economic growth? We investigate the changing function of authoritarian repression and the ways in which dictators accommodated rising opposition during Taiwan’s period of authoritarian rule. Using time-series data spanning 39 years (1949–1988), this article analyses the relationship between economic development, opposition movements, and shifts in repression strategies under the Kuomintang (KMT) rule. Drawing on historical documents and statistical analysis, we argue that economic development influences patterns of repression. With economic growth, autocrats tend to adopt selective repression rather than indiscriminate violence (e.g., mass killings), as the latter risks inciting greater social unrest and endangering regime stability. Using an additive dynamic linear model (ADLM), our findings suggest that economic development, when coupled with rising social movements, compels dictators to rely on less severe yet more targeted forms of coercion. While this adaptation may temporarily bolster regime control amid economic growth and social unrest, it may ultimately undermine the foundation of long-term authoritarian resilience. This work bridges the gap between repression literature and modernisation theory by demonstrating that authoritarian decision-making in repressive policies plays a crucial role in shaping the fate of both dictatorships and opposition movements.
This study treats the selection of land conservation and intensive use model counties as a quasi-natural experiment. Using Chinese county-level panel data, we evaluate the multidimensional impacts of the land conservation and intensive use policy (LCIUP). We find that LCIUP reduced PM2.5 concentrations in counties while simultaneously lowering per capita GDP, exerting a positive effect on environmental quality but a negative inhibitory effect on economic growth, showing a distinct environment–economy asymmetry. LCIUP restricts industrial land supply and curbs the entry of polluting enterprises, but fails to facilitate industrial transformation and upgrading. Counties reliant on secondary industries face significant industrial transformation lock-in challenges, while those with substantial market potential can achieve dual economic and environmental goals. Green finance policies effectively complement LCIUP to promote industrial transformation and upgrading, whereas technological innovation and talent attraction policies currently lack such synergy. Cost–benefit analysis confirms that LCIUP’s marginal environmental benefits outweigh economic losses.
This chapter analyzes how social policy in China has contributed to the well-being of the middle class and their trust of the government. The author argues that if we examine not just China’s earlier reform period (1978–2003) and the fast-growing era (2003–2012), but also the sharp Left Turn in recent years (2012–present), it is hard to fit China’s social policy into the theories of productivism or developmental welfare state that are often associated with the East Asian countries. China’s welfare system is an instrumentalist model which is centered on maintaining the leadership of the Communist Party of China. With this in mind, social policies have been actively used in the past few years to support two mutually independent but intersecting intermediate goals: maintaining economic development and social stability. Both are vital to the party’s authority.
China’s rapid economic development exerts significant political effects. Modernization theory posits, with an optimistic outlook, that sustained economic growth will foster increasing public demands for political liberalization and democratization. Empirical findings presented in this chapter reveal that a majority of Chinese citizens report heightened satisfaction with their civil liberties and political rights following improvements in their overall well-being. Specifically, life satisfaction in the economic sphere demonstrates a positive spillover effect on satisfaction with civic and political rights. Furthermore, life satisfaction across economic, social, and individual dimensions positively influences the political realm, resulting in inflated satisfaction regarding limited civil and political rights.
How do people perceive the utility of redistribution? Support for redistribution is commonly understood as being determined by self‐interest in a way that is monotonically proportional to expected net transfers. However, this would imply that average support for redistribution is static and unaffected by changes in the distribution of incomes. This study addresses this incongruence by integrating concepts from the literature on redistribution preferences, namely the diminishing marginal utility of income, inequity aversion and loss aversion. These concepts are formalized by making two distinctions regarding redistribution: absolute versus relative utility and gains versus losses. An analysis of the European/World Values Survey suggests that the preferences of the poor are determined by absolute gains, while the preferences of the rich are determined by relative losses. In other words, the poor care about how much they gain from redistribution, while the rich care about the share of their income that they lose from it. The findings have important implications for the relationships among public opinion, economic development and income inequality.