For most less-developed countries, the proven technologies of the high-income countries are readily available. Why hasn't this always led to economic growth for these low-income countries?
The mere existence of technology is not sufficient for economic growth; the technology must be put to use. In many less developed countries, legal institutions that fail to protect property rights and enforce contracts in an even-handed manner often undermine the use of modern technology and business practices that have been successful in other places. Tax and trade policies can also hamper the application of modern technology. Modern technology alone will not lead to rapid growth and high levels of income. Countries must also get the institutions and policies right.
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What will be an ideal response?
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