Reason: Why Poor Countries Are Poor: The clues lie on a bumpy road leading to the world’s worst library. by Tim Harford

An economic analysis, with case examples, of the pervasive effect of corruption in the third world...I found it an interesting read...

Reason: Why Poor Countries Are Poor: The clues lie on a bumpy road leading to the world’s worst library. by Tim Harford: "It is not news that corruption and perverse incentives matter. But perhaps it is news that the problem of twisted rules and institutions explains not just a little bit of the gap between Cameroon and rich countries but almost all of the gap. Countries like Cameroon fall far below their potential even considering their poor infrastructure, low investment, and minimal education. Worse, the web of corruption foils every effort to improve the infrastructure, attract investment, and raise educational standards.

We still don’t have a good word to describe what is missing in Cameroon and in poor countries across the world. But we are starting to understand what it is. Some people call it “social capital,” or maybe “trust.” Others call it “the rule of law,” or “institutions.” But these are just labels. The problem is that Cameroon, like other poor countries, is a topsy-turvy place where it’s in most people’s interest to take actions that directly or indirectly damage everyone else. The incentives to create wealth are turned on their heads like the roof of the school library."