The Institute for SocioEconomic Studies is a private operating foundation
that examines issues relating to economic development, poverty, health care reform and the quality of life
Economic Diversity Is Only Part of the Story
Published in Business Week -- November 26, 2001
The Ross study's effort to
link a lack of human development to countries' overreliance on commodity exports overlooks the more important relationship between freedom
(both political and economic) and human development. An analysis of these same countries that incorporates freedom reveals that the nations that are both
politically and economically free fare best in terms of human development. Those that lack both kinds of freedom do worst. Economic diversity is not the
most effective solution for overcoming poor countries' challenges. Rather, a combination of political and economic freedom offers them their best chance
for improving their human development situation.
Donald J. Sutherland
Institute for SocioEconomic Studies White Plains, NY