Why Economies Grow

by Jeffrey Madrick

The forces that shape economic growth: The size of markets. Large markets make economies of scale possible and thus encourage saving, investing, and the development of new products. The availability of information and the literacy of the population. The spread of information gives people access to scientific and technical ideas, products, and productive farming, manufacturing, and marketing techniques. Natural resources. These seem like primary requirements but are not: they depend on markets for their commercial value. Surplus capital -- savings -- that can be used as investment. Basic economic rights such as guarantees of property and contracts. Entrepreneurialism, creativity, and the human drive for self-improvement. Technology and invention. While commonly seen as primary (or even the only) requirements for growth, these are strongly dependent on other factors.

256 pages, Hardcover

First published October 1, 2002

About the author

JEFF MADRICK is a regular contributor to The New York Review of Books, and a former economics columnist for The New York Times. He is director of the Bernard L. Schwartz Rediscovering Government Initiative at the Century Foundation, where he is a Senior Fellow; editor of Challenge Magazine; and visiting professor of humanities at The Cooper Union.

He has written for many other publications over the years, including The Washington Post, The Los Angeles Times, Institutional Investor, The Nation, American Prospect, The Boston Globe, Newsday, and the business, op-ed, and the Sunday magazine sections of The New York Times.