For years, economists and political scientists studied the relationship between government institutions and economic growth – mainly the association between democratic institutions and economic development within a state. The general consensus was that although democracy does not directly lead to economic development, higher human capital accumulation, lower inflation, lower political instability, and higher economic freedom usually were prerequisites for development. Furthermore, economic sources of growth, like education levels and lifespan, through improvement of academic institutions as well as healthcare were all present in democracies. Read for more on how in recent years, China has challenged these conventional political norms greatly.
Managing director and head of emerging markets at CitiBank, David Lubin, published Dance of the Trillions: Developing Countries and Global Finance in 2018 that discussed topics regarding modern capital flows between high and low-income countries. Unlike the Dependency Theory, Mr. Lubin takes a more positive outlook by taking readers through a modern historical tour of economic development within emerging economies. Read for more on how Lubin traces how the traditional approach of Washington DC-led liberalization is slowly being replaced by a Beijing-led approach of state-imposed restrictions.