Sunday, November 3, 2013

Improvement and Persistance in Liberia

The recently released Ibrahim Index of African Governance has Liberia ranked as the most improved nation "in terms of overall governance since 2000". With the ending of Liberia's devastating civil war over 10 years ago, the country began the transition into more inclusive institutions. Their overall progress is positive, with the biggest improvements seen in the category of "Safety and Rule of Law". This improvement suggests that the Liberian government is becoming more centralized, a key aspect of a move toward inclusive institutions. However, despite major improvements, Liberia had its lowest ranking in the category of "Sustainable Economic Opportunity". Without economic opportunities to provide incentive, the country will not be able to experience significant sustained growth.

Another article also discusses the corruption that persists in the Liberian police force. According to the article, the police "simply take what they like"from street vendors. It is this sort of insecure property rights that Acemoglu and Robinson point to as stifling the incentive for entrepreneurship.

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