[..] rich countries do not suffer from ethnic heterogeneity not because they do not have it but because they have succeeded in nation-building [...]
Since the late 1970s (starting with Senegal in 1979), Sub-Saharan African countries were forced to adopt free-market, free-trade policies through the conditions imposed by the so-called Structural Adjustment (SAPs) of the World Bank and the IMF (and the rich countries that ultimate control them). […
[...] We don't see any Swiss manufactured products around because the country is small (around 7 million people), which makes the total amount of Swiss manufactured goods rather small, and because its producers specialize in producer goods, such as machinery and industrial chemicals, rather than co…
Then why are the relative prices of manufactured goods falling? It is because manufacturing industries tend to have faster productivity growth than services. As the output of the manufcaturing sector increases faster than the output of the service sector, the prices of the manufactured goods relati…
