Power and Prosperity

Author: Olson
Publisher:
Publish Date: 2005-04-01
Features: This is Olson's last important work in his lifetime. In the book, Olson primarily explores the relationship between politics and the market and strategically addresses questions like "Why are some countries wealthy while others are poor." According to Olson, the conditions for a society to "possess a market capable of bringing economic prosperity" are: (1) reliable and clearly defined individual rights; (2) the absence of any form of coercion or theft. Without these two conditions, socio-economic prosperity is impossible. The government itself plays a dual role in economic development—one positive and one negative. To ensure the government acts as a facilitator, it must start with the government's incentives and establish a political system that grants decision-making power to the greatest common interest. Olson's model is concise and rigorous, his analysis sharp and filled with wisdom. As an economist, the influence of his work has long extended beyond the field of economics, impacting disciplines such as political science and sociology.