MILOEK
Militärökonomische Forschung und Lehre
Research and Courses in Economics of Defense
E
Online: * August 2012
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First Version: April 2011
This Version: December 2012
The graphical representation on the right illustrates why a country after a revolution “can be damned” to pursue an economic growth path focusing on changing the rules for rent seeking: It misses the threshold of resources required to train a diversified and educated workforce.
The illustration on the left presents four basic models of development for societies. The probability of success for rent seeking activities ─ severely restricting the growth potential after a while ─ increases with the size of the population and the wealth of resources available.
For example, one major counter measure to coordination problems with significant population numbers is a federal state organization.