What is the effective way to combat poverty? Chris Blattman, an assistant professor of political science and economics at Yale, bets on industry.
“All the microfinance and microenterprise programs in the world are not going to build large firms and import technology and provide most people with what they really want: a stable job, regular wages, and a decent work environment,” Blattman blogs.
However, attracting firms is “the tricky question,” Blattman argues, noting that most companies will not be homegrown but instead spread across borders.
Explains Blattman: “The countries that will get them first are the ones that are close to trade routes, have stable political climates, make it easy to get finance, are open to trade, have large domestic markets, have able and educated workforces (i.e. secondary education), and have leaders in charge who don’t see the industrial sector as either a threat to their power or a garden from which they get to select the sweetest fruits for themselves. “