Power and prosperity : outgrowing communist and capitalist dictatorships

Why do some economies do better than others? How does society encourage the kind of market economy that generates continually increasing incomes? How do particular styles of government affect economic performance? World-renowned economist Mancur Olson tackles these questions and others in what will surely be regarded as his magnum opus. Olson contends that governments can play an essential role in the development of markets. Reliable enforcement of private contracts and protection of individual rights to property depend on governments strong enough not to undermine them. His exploration of "market-augmenting governments" will stand as a cutting-edge work on economic growth and provide a useful framework in which to consider the Asian financial crisis and its aftermath. As Susan Lee noted in Forbes, "his pioneering insights might have won a Nobel Prize for Olson had he lived a bit longer." Contents 6 Foreword 8 Preface 24 1 The Logic of Power 34 2 Time, Takings, and Individual Rights 58 3 Coaseian Bargains, Transactions Costs, and Anarchy 78 4 Rational Individuals and Irrational Societies 102 5 Governance and Economic Growth 122 6 The Sources of Law Enforcement and Corruption 134 7 The Theory of Soviet-Type Autocracies 144 8 The Evolution of Communism and Its Legacy 168 9 Implications for the Transition 188 10 The Kind ofs Markets Needed for Prosperity 206 Notes 234 Biliography 254 Index 260 "In Power and Prosperity, which he completed just before his death last year, Olson takes on the broadest questions of his career: Why do some economies perform spectacularly, providing incredible wealth and prosperity, while others fail miserably? How do different forms of government either hinder or promote economic growth? And, more specifically: With the collapse of the Soviet system, why have markets not flourished?"--Jacket This final work by a world-renowned economist will take its place among the classics of political economy