What Causes Economic Growth? Institutions or Human Capital?

What Causes Economic Growth? Institutions or Human Capital? Introduction An increasing amount of empirical research has been focused on measuring and approximating the effects of historical variables on the economies of today. There seems to be a chicken or the egg story in the literature: Do political institutions cause economic growth or does economic growth, through human capital, lead to better institutions? There seems to be a gap in the literature around the colonization period concerning human capital and institutions. We would like to add to this debate by researching the period before the colonization, using empirical research. We would like to add to this debate by researching the period beforearound the colonization period: Could it be possible that the human capital people broughtbrought by people to the colonies was gained due institutions in their native countries and that therefore institutions cause better human capital and therefore growth? In this essay we will bring across a simple message: you first need institutions to create human capital, in order to foster growth.? First we will lay the foundation of our theory by discussing empirical works that cover theperiod before the age of imperialism. Then we shall discuss the empirical proof that institutions do cause growth, after which we will analyze refute the human capital side argument. Finally, we will sum up our findings and provide suggestions for further research. Reversal of fortune and the importance of institutions Acemoglu et al. (2003) deliver a detailed analysis on different outcomes of today’s post-colonial countries. It was found that the divergence in economic development that is observable among former colonies is caused by the way the settlers established institutions in the area. Indeed, it is easily seen that regions like North America have shown to perform much better than countries located in Central and Southern America and in other parts of Africa colonized by roughly the same populations. Essentially, in the areas where resources were relatively scarce and population density was low, the pioneers established institutions pretty similar to the ones they had in their homeland, implementing systems of property rights protection that stimulated investments. In areas where resources and indigenous inhabitants were abundant, the settlers created â€Å"extracting institutions†, where their goal was not a long lasting development, but just a depletion of resources. These in stitutions were based on property rights restricted to an enclosed elite that consisted of the European settlers, in which the indigenous population was not included. not of indigenous people but that excluded the indigenous people., who The indigenous peopley were forced to work, mostly in conditions of slavery, in order to yield the highest profit possible. This explains why countries which were prosperous before the colonization, are today performing much significantly worse than countries where institutions were accessible to by all the inhabitants. Therefore, what these findings really show is that human capital is not the ultimate deep cause of eof better institutionsconomic development, but that instead it is the proximate cause., Indeed the true cause of why some colonies thrived and others haven’t ofare institutions and these institutions which supplied the legal foundations, including property rights  being the ultimate cause. More evidence on thisin favor of our thesis is given by Acemoglu et al. (2014), who gathered data about the literacy of the different settlers. They showed that the conquistadores that who colonized South and Central America where much moresubstantially better educated (at least speaking about literacyusing literacy as a proxy for the level of education) than the English settlers colonizing North America. Nevertheless, the latter turned out to be better developed in the future. Acemoglu et al. (2014) finds again that the primethe reason forof this difference is into the kind of institutions that were in place. Besides this explanation, there is another key variable missing; the education these settlers received in their homeland. Institutions and human capital did not come out of the blue, but most of the papers written supporting the human capital argument assume everyone starts off from square one, so to say, when they arrive in the colony. For example, a person educated as an engi neer does not lose his engineering knowledge, once s/he arrives in the colony, like the human capital argument suggest. Furthermore, Acemoglu et al. (2014) show that there is no significant support for the human capital argument that differences in the human capital endowments of colonists have been a crucial factor in the institutional development of these institutions. The way institutions were established by the colonists was deeply influenced by the institutions in their home countries. Especially before those colonies became independent they were legally dependent on their homeland, with roughly the same institutions, the difference being that these institutions were reshaped in order to comply with territorial needs. The new communities established would base their institutions on the ones they were used to in their native country. Of course with time some switched to different systems, but the so-called seed that let the tree grow was coming from somewhere else. And this â₠¬Å"somewhere else† is indeed their country of origin and its institutions. Considerations on the human capital theory In this section we are going to better explain why we consider the claim that human capital is the prime cause of economic development is wrongeconomic growth causes better institutions is inconsistent. In a prominent human capital argument article by Glaeser et al. (2004) the relation between human capital and growth is the point of discussion. The authors claim that countries possessing more human capital in the past performed better than others, independently by which institutions they were established before the introduction of human capital. They affirm that human capital is not caused by institutions, but that instead it causes themhuman capital causes growth and therefore better institutions. Granted, Glaeser et al. (2004) has the same requirement as we propose for growth; property rights. However,We strongly disagree with that view. A population can have as much human capital as they can accumulate, but if it is not pushed to its real potential, it fails to improve a societyà ¢â‚¬â„¢s economic situation. we then wonder how a society can gain human capital, without well-functioning institutions that provide property rights. If that society does not protect property rights or does not give to all its components roughly equal rights, growth will be slower, if not completely absent. people will not invest in human or physical capital, since the payoff of the investment is uncertain. Think about a generic example: if a society does not protect anyone’s property but just the property of a closed elite, outsiders who might have groundbreaking ideas, will probably not get to develop their ideas, given that in this way they might not have the means to do so or they might just not be given the incentive to fulfill their potential. This is exactly what we think has happened in the extracting societies: even if the conquistadores were better (according to the literacy measurements made by Acemoglu et al.) were pretty educated on average, the indigenous popula tion wereas not allowed to participate in the society improvement process or to hold property; instead they were forced to work in conditions of slavery. The opposite happened in North America and we can see how ithistory tells how it turned out: most of the population was composed by emigrants from the Old Continent, whom wereto whom were given the same rights, and even if there were some minorities like the African American who were granted less rights, there were still more people enjoying the benefits of the institutions than in the countriesthe countries where extracting institutions persisted. Further evidence in support of our argumenton this topic is given by Weil (2013): when comparing a country’s wealth with its amount of human capital seen as education, he shows that there is no direct correlation. The difference in wealth is not entirely explained by education. If this was the case, for example, Mozambique would have had 43% of the U.S. GDP (Gross Domestic Product) per worker, but in reality it produces only 1.9% of it. Weil explains this discrepancy using the quality of education, which changes the effect of education on wealth drastically. These differences in quality of schooling are directly related to the institutions present; the students of richer countries learn faster and more effectively, because they are provided better educational facilities and means of learning. Conclusion As we have shown in this brief essay, in order to foster growth potential in the first place, one needs institutions that create and protect property rights. Indeed, we have shown, using empirical research, that human capital is caused by institutions in the first place, which then indirectly causes growth. However, we do not say that human capital cannot feed into the quality of institutions at a later stage, the relation is far more elegant and complex than that, we simply wanted to show that the institutions are the beginning of the story. Furthermore, we think that institutions placed in colonial countries did not directly originate there, but that they were derived from the institutions that were present in the native countries. As a final remark, we strongly urge that more research should be done on the development of institutions and human capital and how they compare to their native country around the colonization period, which has only been treated superficially in the lite rature. References Acemoglu, D., Johnson, S. and Robinson, J. (2002). ‘Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution’. The Quarterly Journal of Economics, 117(4), pp.1231-1294. Acemoglu, D., Gallego, F., and Robinson, J. A. (2014). ‘Institutions, human capital and development’. Unpublished working paper. University of Harvard, Cambridge. Glaeser, E., La Porta, R., Lopez-de-Silanes, F. and Shleifer, A. (2004). ‘Do Institutions Cause Growth?’. Journal of Economic Growth, 9(3), pp.271-303. Weil, D. (2013). Economic growth. Boston: Pearson, pp.170-197.

History Recycled in the Works of T.C. Boyle Essay -- Biography Biograp

History Recycled in the Works of T.C. Boyle      Ã‚     "Past and present, sharply separated by the chapter structures, are fused in motifs and unstressed parallels" (DeMott 52).   History's repeating itself is a dominant theme throughout T.C Boyle's novels. If people do not learn from past mistakes, they are likely to fail again. By revisiting history, Boyle teaches the importance of awareness and caution of an ever-changing society. In The Tortilla Curtain a specific migrant problem in the 1930s is modified to fit modern immigration. Candido and America's battle for survival after immigrating to the United States repeats a similar event depicted in Steinbeck's The Grapes of Wrath.   Boyle's twisted short stories in the If the River was Whiskey mirror events in history in the light of modern times.   The similarities between the Van Brunts and the Van Warts in The World's End contribute to identical generations, separated by three hundred years.   Boyle attacks modern society's conceited, self-absorbed attitude, and he discourages reiteration of the past.      Ã‚  Ã‚  Ã‚   In the Tortilla Curtain, Boyle recycles a past   dilemma, as he writes of a problem similar to the "Dust Bowl" migration of the 1930s.   Candido Rincon and his wife America travel from Mexico to America through the "Tortilla Curtain," searching for work, while constantly striving to achieve the American Dream.   In this journey, the Rincons encounter several racist obstacles including a pack of white men who beat and rape America during her pregnancy, leaving her to die.   Constantly searching for work and money takes Candido mentally and physically away from his wife. High in the Arroyo Blanco ("white rice") Estates lives the Mossbacher family, which dwells in the... ...nglisch.schule.de/boyle/boylerev.htm (5/19/99) Kakutani, Michiko.   "Review of World's End."   New York Times, September 23, 1987, p. C27.   Rpt. Contemporary Literary Criticism, vol. 55.   Detroit: Gale, 1988.   92 vols. Rettberg, Scott.   " Interview with T.C. Boyle."   Ã‚  Ã‚  Ã‚  Ã‚  http://authors.miningco.com/library/weekly.htm (5/7/99) Spencer, Scott.   "The Pilgrim of Topagana Creek."   New York Times Book Review.   Sept. 3 1995, p.3.   Rpt. Contemporary Literary Criticism, vol. 90.   Detroit: Gale, 1995.   92 vols. Ulin, David L. "Boyle Wonder."   The Village Voice November 10, 1998, Vol. 43 Issue 45, p.132 _____.   "Lost in the Funhouse."   Bloomsbury Review.   Nov-Dec. 1989, p.5. Rpt.   Contemporary Literary Criticism, vol.90.   Detroit: Gale, 1995. 92 vols. "At a Glance: The World's End by T.C. Boyle" http://.www.amazon.com/exec.htm (5/4/99)

Business Law Essay

On Monday, A proposed to B to buy B’s car for $12,000 by post. It is primary to distinguish between an invitation to treat and an offer, as an offer once accepted creates a legally binding contract in which does not apply to the alleged acceptance of an invitation to treat. Therefore, the issue is whether the proposal from A is an offer or an invitation to treat. An offer is defined in Preston Corpn Sdn Bhd v Edward Leong [1982] as an  intimation of willingness by an offeror to enter into a legally binding contract. Its terms either expressly or impliedly must indicate that it is to be become binding on the offeror as soon as it has been accepted by the offeree. The crucial factor that determines whether something amounts to an offer is the intention to be bound, which is usually shown by the wording. Conversely, an invitation to treat is a proposal to negotiate or an attempt to receive proposals. The person extending the invitation is merely indicating that he/she is willing to enter into negotiations but is not bound to accept any offers made. Nonetheless, in the English of Smith v Hughes [1871], the court emphasized that the important thing is not a party’s real intentions but how a reasonable person would view the situation. This is due mainly to common sense as each party would not wish to breach his side of the contract if it would make him/her blameworthy to damages. The details of A’s letter are omitted, thus making it the more difficult to assess the express and implied terms of the proposal, which would come in handy to determine whether or not there is an intention to be bound. Although buyers may have the inclination to negotiate on the terms, rarely will there be one who will do so after initiating a proposal. Once taken the initiative and had gone through the hassle to write out a letter and have it sent, this shows an expression of willingness to buy therefore it is plausible that there is an intention to be bound. But of course this would be my personal presumptions as a reasonable person. Wrapping up, in my opinion, this proposal from A is suggested to be an offer instead of an invitation to treat and once there is an acceptance from B, a mere agreement will be formed. Some prerequisites are mandatory to make an offer valid, thus leads on to the following case. The letter of offer from A was misplaced by the postman and picked up by B’s neighbor, C who passes B the letter on Friday. Logically; an offer must be acknowledged by the offeree to be valid. The concern here is whether the  offer from A was communicated and validated. As stated in Barnes. et al. (2006, p.166) â€Å"The act of communicating the offer indicates that the offeror is willing to be bound by its terms. On the other hand, a non-communicated offer may be evidence that the offeror has not yet decides to enter into a binding agreement.† The general rule of acceptance is that performance of the requested act does not amount to an acceptance unless the party performing the act did so with knowledge of the existence of an offer. If otherwise, a party could find himself bound to the terms of a contract of which he was entirely unaware. However, there is a case for making an exception in the case of a unilateral contract, at least when performance of the act cannot subject the performing party to any disadvantage. Gibbons v Proctor [1891] is an English Contract Law case that deals with an offer, via advertisement, and whether or not a person who does not know of the offer can accept the offer if they complete the terms of the offer. The case has also been cited as authority for the proposition that acceptance in ignorance of an offer is effective: that a person who gives information for which a reward has been offered can claim it even though at the time of giving it he had no knowledge of the offer of reward. Nevertheless, this offer from A is a sort of bilateral contract, in which A is promising to pay B $12,000 for another promise from B for his car. As the letter of offer from A was in the hands on C and it did not reached B as intended; therefore there is no actual communication and the offer is scarcely considered valid. Common sense tells us that if B had not received the offer from A, there is no way B would learn of A’s offer and let alone to reply to it. An offer made through the post will not be effective until it is received and read by the offeree. In conclusion, my thesis is that the offer from A was neither communicated nor valid till Friday when B received the letter from C. On Tuesday, B proposed to sell his car for $11,000 to A by post and the post reached A on the following day. In the event where B proposed the offer upon acknowledgement of the offer made by A, it would be regarded as a counter offer, which in turn would be a distinction to acceptance. But this will not apply in this case as B’s proposal was made before the awareness of A’s offer. As a result, this proposal here will be subjected to whether or not the proposed is an offer and a legitimated one. In the previous issue, the buyer, A is making a proposal to the prospective seller, B and more often than not it would be an offer. When the roles are reversed, the proposal could be either an offer or an invitation to treat, hence, the need to highlight the differences. As presented in page 2, the explanation of an offer is unambiguous. However, for further illustration on invitation of treat, in Partridge v Crittenden, the defendant was charged with an offence of offering wild birds for sale with the aid of advertisement contrary to the Protection of Birds Act 1954. He was found not guilty since he had not offered the birds for sale; the advertisement was simply an invitation to treat. Adding on, in Fisher v. Bell [1961], the defendant was charged with the offence of offering for sale a flick knife contrary to section 1[1] of the Restriction of Offensive Weapons Act 1959. He had displayed the knife in his shop window with a price ticket behind it. It was held that the defendant had not committed the offence as, in displaying the knife in his shop window; he had not offered it for sale. These two examples of invitation to treat opposed to the common, non legal, understanding of the term ‘offer’. Goods in shop windows or on display and goods advertised are usually invitation to treat which invites people to make offers and where the seller may choose to or not to sell. Chances are that B’s proposal to A is an offer because if otherwise, he would not had taken the trouble to pen it down and have it sent. As previous case, this is merely my assumptions as a reasonable person. The letter intended for A from B was clearly communicated as it reached A the  following day, Wednesday. In conclusion, my perspective is that the proposal made by B is an offer and a valid one as the offer was acknowledged by the offeree, A. A fax of acceptance was sent by A to B in regards of the $11,000 offer for B’s car. However, was never printed out due to paper failure in B’s fax machine. This is evidently an acceptance as it mirrors the offer from B. When an acceptance is effective can be critically important as in most occurrences, the offeror has discretion to revoke the offer at any time before acceptance. The general rule is that an acceptance has no effect until it is communicated to the offeror. In Powell v Lee [1908], the defendants who were the managers of a school had decided to appoint the plaintiff headmaster. One of the managers told the plaintiff of the decision without authorization. Subsequently however, the defendants reversed their decision and appointed a third party in which the plaintiff was suing for breach of contract. The plaintiff’s action failed as for there to be a concluded contract, it was essential that there should be a communication made by the body of the persons to the selected candidate. By using the facsimile machine to send acceptance, it is an effective means of direct communication and no contracts will be created unless it is received by the offeror. In other words, the acceptance is not complete when the message is transmitted but only when it is received. However, in this case, A must have reasonably believed that his acceptance was communicated but this is not so because of the fault of B, then B may be estopped from saying that he did not receive the acceptance. This is clearly the fault of B as fax is a technologically advanced method of communication and B will generally know at once that the fax has not been communicated. The balance of faults weighs more heavily on B, hence the postal rule can be applied in which the acceptance was effective once A made the fax and an agreement between A and B will surface. However, in the event where A’s fax had been printed but not acknowledged by B for three days. Postal rule will not apply in this circumstance as not only is it an instantaneous form of communication but, under the traditional contract principles, if the offer or circumstances do not indicate otherwise, the means the offeror used to converse the offer is the impliedly authorized means for accepting. In other words, unless B had specifically request for other form of communication, it is reasonable for B to assume that A would send his acceptance by post and would not be waiting by the fax machine. In this circumstance, the acceptance is only complete when B acknowledges it three days later. However, the case of Tenax Steamship Co Ltd v Owners of the Motor vessel ‘Brimnes’ [1974] contradicts the statement above as it appears that it is not necessary for the offeror to have read the message. If this is applied, the acceptance will be completed on the day itself when A had faxed it instead of three days when B reads it. Personally, as a reasonable person, I would not agree on the latter as it is extremely unjust for B. There are numerous methods of communication, the instantaneous kinds, e.g. via telephone, e-mail as well as the non-instantaneous kinds. No one would be able to predict the form of communication adopted by the other party so B could not possibly be hanging around the room where the fax machine was situated in, waiting for A’s reply. Thus, if B is ignorant of the acceptance, the acceptance would not be of use. On Friday, B posted his acceptance to sell his car for the offer made by A on Monday. The letter was not received by A for two weeks. When an acceptance is to be made through the postal system, the postal rule does apply in which will results in an agreement on Friday regardless of  whether A receives it or not. This peculiar rule developed by the English Law has been first enunciated in the case of Adams v Lindsell [1818], where an acceptance is completed as soon as posted. â€Å"In Adams v Lindsell [1818], the defendant wrote to the plaintiff offering to sell him wool and asked him to reply by post. The plaintiff replied on the 5th but the letter reached the defendant on the 9th. Meanwhile on the 8th, not hearing anything from the plaintiff, the defendant sold the wool to a third party. The plaintiff sued the defendant and the court held that the acceptance was effective when the letter was posted and so there was a contract and the defendant was in breach of it.† Cited from Chandran (p.24) Saying as much, this contract will not be valid as there was previously an agreement made between A and B when A faxed his acceptance. The contract between A and B is where A will pay $11,000 for B’s car and B would have to let go for $11,000 as stated in page 4. No doubt it would be hard on B if he could be bound even without knowing his offer had been accepted. Nonetheless, as mentioned it was his own slip-up that results in the unknown bound. Since the contract for $11,000 is valid, there would be no existence of subject matter of contract which is B’s car in the $12,000 contract and there is no way B will be able to sell the same car twice without breaching the contract. REFERENCE LIST Barnes, J.D., et al. _Law for Business_, 9th Edition. New York: McGraw-Hill Irwin Bond, H.J., et al. _Business Law_, 2nd Edition. Great Britain: Blackstone Press Limited London Chandran, R. Introduction to Business Law in Singapore, 2nd Edition. New York: McGraw-Hill Irwin Frey, M.A., et al. _Introduction to the Law of Contracts_, 4th Edition. United States: Thomson Delmar Learning New York Kelly, D., et al. _The Cavendish Q & A Series: Business Law_, 1995. Great Britain: Cavendish Publishing Limited London Keenan, D_. Advanced Business Law_, 10th Edition. Great Britain: Pitman Publishing London Lawson, R., et al. _Business Law for Business and Marketing Students_, 3rd Edition. Great Britain: Butterworth-Heinemann Low, K.Y., et al. Business & The Law, 1997. Singapore: Pitman Publishing Asia Pacific Major, W.T. _Law of Contract_, 9th Edition. Great Britain: Pitman Publishing London McKendrick, E. _Contract Law: Text, Cases, and Materials_, 2nd Edition. United States: Oxford University Press Inc Read, P.A. _Contract Law Casebook_, 7th Edition. Great Britain: HLT Publications London Soe, M. Principles of Singapore Law: including Business Law, 4th Edition. Singapore: The Institute of Banking & Finance Tabalujan, B.S. _Singapore Business Law_, 4th Edition. Singapore: BusinessLawAsia Terry, P. _Mastering Business Law_, 2nd Edition. Great Britain: Macmillan Press Ltd Houndmills, Basingstoke, Hampshire and London Assignment Cover Sheet

The Fall Of Macbeth Essay - 685 Words

Shakespeare uses many forms of imagery. The forms of imagery that are used in his play Macbeth’ include the forms of clothing, darkness, and blood. Each image is an important symbol in the play.Clothing, is a major and crucial part of ‘Macbeth’, Shakespeare purposely used it to reveal Macbeth’s true character. It is also used to show how Macbeth is seeking to hide his â€Å"disgraceful self† from his eyes and from others. Clothes in the play aren’t really clothes; the clothes that are being talked about are statures. Throughout the play Macbeth is represented symbolically as a person that wears robes that are not belonging to him, a person with an undeserved dignity. Macbeth is never comfortable with his clothes because of his conscious†¦show more content†¦The first time we see blood in the play is when Macbeth sees the bloody dagger floating in the air in front of him. Shakespeare used this image to foreshadow what is going to happen next. Is this a dagger which I see before me,The handle toward my hand? Come let me clutch thee.I have thee not, and yet I see thee still.Art thou not, fatal vision, sensibleTo feeling as sight? Or art thou butA dagger of mind, a false creation,Proceeding from the heat-oppressed brain?I see thee yet, in from as palpableAs this which now I draw.Thou marshall’st me the way that I was going, And such an instrument I was to use. (Macbeth, 2.1, 33-61, p.26) The second time blood is mentioned it was talking about guilt. This was when Macbeth killed the king, and forgot to cover the drugged guards with blood. quot;I laid their daggers ready; He could not miss themquot; (Lady Macbeth 2.2, 11-12, p.28) When Lady Macbeth was talking about this she said â€Å" their † so she was setting up the innocent guards. This left in her the guilt that stayed with her till the moment she dies. Another example of guilt is when Macbeth comes to wash his hands from the blood of the king he says â€Å"quot;Will all great Neptunes ocean wash this blood clean from my hand?quot; showing that nothing can ever wash away his guilt.Another brick that helped build the play is darkness. Darkness is used to build an atmosphere in the play, due to everyShow MoreRelatedLady Macbeth Is Responsible for the Fall of Macbeth899 Words   |  4 PagesLady Macbeth is responsible for the fall of her husband It can be said that Lady Macbeth is responsible for the fall of Macbeth. I believe that she was partly responsible for this. I believe that two sets of people are responsible for the fall of Macbeth.. Secondly I believe that Lady Macbeth is responsible for his fall. She urges him to kill Duncan questioning his manly-hood and saying that he was too kind. Finally I believe that the witches played a huge part in the fall of Macbeth. 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