From Rent-seeking to Profit-creation: Private Sector Development and Economic Turnaround in Fragile States

Piffaretti, Nadia F. (2010): From Rent-seeking to Profit-creation: Private Sector Development and Economic Turnaround in Fragile States.

Abstract

The paper suggests a framework for evaluating the relevance of strategies of private sector development in fostering sustained economic turnaround in fragile and post-conflict situations. It highlights how fragility, violence and conflict change economic structures, introducing distortions, trapping agents into “short-termism” and changing incentives toward rent-seeking, and explores strategies for supporting shifting economic systems from predation to production.

• Item Type: MPRA Paper
• Language: English
• Keywords: Fragile States, Economic Turnaround
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D74 - Conflict ; Conflict Resolution ; Alliances ; Revolutions; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General

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