3551. Ethnicity, Capital Formation, and Conflict
- Author:
- Richard N. Cooper
- Publication Date:
- 12-1999
- Content Type:
- Working Paper
- Institution:
- Weatherhead Center for International Affairs, Harvard University
- Abstract:
- "Development" implies change over time. More specifically, the term implies that particular features of the society, the economy and the polity increase in magnitude with the passage of time.This essay treats development as the process of structural change. As societies develop, they transform: towns grow, industry expands, and per capita incomes rise as labor shifts from employment in agriculture to employment in industry (Kuznets 1966; Polanyi 1944; Chenery and Taylor 1968 ). One source of increased incomes is a growing stock of productive inputs and, in particular, of capital. As each worker gains access to an increased stock of capital, each becomes more productive and the level of output per capita rises. Another source is technical change. In industry, possibilities exist for increasing returns to scale and for complementarities that agriculture lacks. Labor employed in town gains access to technologies that are more productive than those in villages. The shift of employment from agriculture to industry and from village to town therefore results in a rise in per capita output.
- Topic:
- Development, Ethnic Conflict, and Migration
- Political Geography:
- Africa