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This study investigates the role of institutions in shaping international differences in economic complexity—a novel measure of productive capabilities. More specifically, economic complexity corresponds to an enhanced capacity to produce and export a diverse range of sophisticated (high-productivity) products. This paper hypothesizes that there exists a positive association between institutional quality and economic complexity. The underlying intuition is that well-functioning institutions fundamentally drive structural transformation towards productive activities via strengthening incentives for innovative entrepreneurship, fostering human capital accumulation, and deploying human resources in acquiring productive capabilities. Employing data for up to 115 countries, I consistently obtain precise estimates of the positive effect of institutional quality, measured by the Economic Freedom of the World Index, on economic complexity. The main findings advocate for establishing a pro-development institutional environment, which helps attenuating the persistence of underdevelopment by fostering economic complexity.

Can part of Africa's current underdevelopment be explained by its slave trades? To explore this question, I use data from shipping records and historical documents reporting slave ethnicities to construct estimates of the number of slaves exported from each country during Africa's slave trades. I find a robust negative relationship between the number of slaves exported from a country and current economic performance. To better understand if the relationship is causal, I examine the historical evidence on selection into the slave trades and use instrumental variables. Together the evidence suggests that the slave trades had an adverse effect on economic development.

Aid donors pursue a strategy of targeted development with regard to recipient states. The determinants of aid allocation have shifted significantly. Industrialized states are increasingly unable to insulate themselves from spillovers caused by underdevelopment abroad. Donors attempt to use aid to decrease these spillovers, targeting developing countries where the effects on the donor are anticipated to be large. Once a recipient is chosen, concern for recipient government capacity guides the composition of aid. Empirical analysis of aid allocation from 1973 to 2012 demonstrates that, while explanations based on security and economic ties to the donor explain allocation well in the Cold War, the post-2001 period is best understood by incorporating a role for targeted development. This framework helps synthesize various findings in the aid allocation literature and has important implications for studying aid effectiveness.

Africa is often seen as a continent of mass migration and displacement caused by poverty, violent conflict and environmental stress. Yet such perceptions are based on stereotypes rather than theoretically informed empirical research. Drawing on the migration and visa databases from the Determinants of International Migration (DEMIG project) and the Global Bilateral Migration Database (GBMD), this paper explores the evolution and drivers of migration within, towards and from Africa in the post-colonial period. Contradicting common ideas of Africa as a ‘continent on the move’, the analysis shows that intra-African migration intensities have gone down. This may be related to state formation and the related imposition of barriers towards free movement in the wake of decolonisation as well as the concomitant rise of nationalism and inter-state tensions. While African migration remains overwhelmingly intra-continental, since the late 1980s there has been an acceleration and spatial diversification (beyond colonial patterns) of emigration out of Africa to Europe, North America, the Gulf and Asia. This diversification of African emigration seems partly driven by the introduction of visa and other immigration restrictions by European states. Contradicting conventional interpretations of African migration being essentially driven by poverty, violence and underdevelopment, increasing migration out of Africa seems rather to be driven by processes of development and social transformation which have increased Africans’ capabilities and aspirations to migrate, a trend which is likely to continue in the future.

Theory and extensive evidence connect poverty and underdevelopment to civil conflict yet evidence on the impact of development programs on violence is surprisingly mixed. To break this impasse, we exploit a within-country policy experiment to examine the conditions under which antipoverty programs reduce violence. The roll-out of India's National Rural Employment Guarantee Scheme caused a large long-run reduction in Maoist conflict violence, as measured with an original data set based on local-language press sources. These pacifying effects were not uniform, however, but overwhelmingly concentrated in districts with sufficient pre-existing local state capacity to implement the program effectively. The results demonstrate the potential for anti-poverty programs to mitigate violent civil conflict by improving livelihoods, but also highlight the crucial role of state capacity in shaping these effects.

Over 50 years after 1960's 'Year of Africa', most of Francophone Africa continues to be embedded in a set of associations that fit very well with Kwame Nkrumah's description of neocolonialism, where postcolonial states are de jure independent but in reality constrained through their economic systems so that policy is directed from outside. This article scrutinises the functioning of the Communauté Financière Africaine (CFA), considering the role the currency has in persistent underdevelopment in most of Francophone Africa. In doing so, the article identifies the CFA as the most blatant example of functioning neocolonialism in Africa today and a critical device that promotes dependency in large parts of the continent. Mainstream analyses of the technical aspects of the CFA have generally focused on the exchange rate and other related matters. However, while important, the real importance of the CFA franc should not be seen as purely economic, but also political.

In previous analyses of regional underdevelopment, aspects such as technological progress, the implications of growth theory, depreciation (especially capital), capital input, and technology input have been completely ignored. Desmet and Ortίn analyze rational underdevelopment using a Ricardian model. This study investigates the underdevelopment of regions in the light of the Solow model. Two regions with two sectors are considered for the model. The regions are characterized by different technological equipment. The first region is industrial. The second region has an agricultural character. When a new technology is available, both regions can benefit under certain conditions. Financial transfers between regions equalize incomes. The security of transfer payments is positive; the increase in income levels without an increase in productivity is negative. The regions have different depreciation rates, factors, and technology endowments. Enlargement to a growth theoretical model framework (Solow model) should demonstrate the effects of an economy’s investments, constant depreciation rates, population growth, and technological progress. This will make it possible to see how the new influencing factors influence the utility of the two regions.

Why do some countries fail to govern their territory? Incomplete domestic sovereignty, defined as the absence of effective state authority over territory, has severe consequences in terms of security, order, economic growth, and human well-being. These negative consequences raise the question of why such spaces remain without effective authority. While the international relations literature suggests that state weakness persists because of an absence of war and the comparative politics literature treats political underdevelopment as the consequence of domestic factors that raise the costs of exercising authority, these views are incomplete. I argue that hostile neighbors weaken state authority over territory through a strategy of foreign interference. Foreign interference in domestic sovereignty is a powerful instrument of statecraft that can yield domestic and foreign policy benefits. I investigate the effects of hostile neighboring states through a cross-national, within-country statistical analysis utilizing a novel indicator of state authority, and pair this analysis with a qualitative case study of Malaysian subversion of the Philippines in the 1970s. Together, this evidence shows how this international factor is an underappreciated yet important contributor to weak state authority even after accounting for domestic factors. The study's conclusions challenge our understanding of the effects of international politics on internal political development.

This paper addresses a corpus of unpublished sources in a first attempt to reconstruct the exile networks of Brazilian geographer Milton Santos, placing his geographical and political work in the context of present‐day debates on development, anti‐development and critical development. Our main argument is twofold: first, we argue that Santos played important although poorly understood roles in the debates that shaped both Anglophone and French‐speaking critical geographers in the 1960s and 1970s. Far from being passive receivers of ideas from the Global North, Southern scholars like Santos contributed to shape worldwide concepts in critical studies on development and underdevelopment. Second, the ideas spiralling out of Santos’ networks can still nourish present‐day scholars in development and critical development theories who are willing to criticise the “ideology of development” without forgetting the material existence of poverty and socio‐spatial marginalisation. Finally, Santos’ biography and networks provide an example of cosmopolitan and multilingual intellectual work that can provide insights for the present‐day internationalisation of critical and radical geographies.

Recognizing the global challenges faced by marine ecosystems and the people that depend on them, there is a growing worldwide uptake of the “Blue Economy” approach for establishing equitable and sustainable ocean industries. Research has shown that the capacity to achieve these Blue Economies is largely shaped by enabling governance conditions related to social and economic equity, more so than available natural resources. Yet there is often a very wide variation across such enabling conditions even within nations and subregions of the world. This must be addressed to build the foundations necessary for regional development and cooperation in shared ocean systems, but will require much beyond investments in scientific knowledge, technology, or infrastructure. Indeed, in most developing (and some developed) regions of the world, enabling conditions for and establishing a Blue Economy will require confronting and redressing colonial and postcolonial histories of systematic underdevelopment. Accordingly, we conduct a regional, historical comparative analysis to assess how country differences in colonial and post-colonial development processes correspond with varying levels of Blue Economy capacity. We focus on the Caribbean given its deep reliance on ocean systems, the wide variability in current enabling conditions for a Blue Economy, and its long history of colonial exploitation. Our structural analysis emphasizes how the historical forces of colonial and neocolonial development serve as long-standing obstacles to achieving high Blue Economy capacity in the region. We reason that these findings provide further justification for reparation programs, which possess relevance for ocean sustainability and development across the Global South.