Characteristics of animals suitable for domestication P13
o Herbivores are more efficient than carnivores
Fast growth rate
Must reproduce in captivity
Must have a docile disposition and not panic
Must have a social structure th
Trans-Atlantic slave trade
Western nations bought slaves. The slaves were captured locally using domestic means by local
people. Western nations didnt capture the slaves themselves.
The British traded alcohol and guns in exchange for African slav
Graph/trend seems to show that adopters of Washington Consensus seems to be doing better than
those who did not liberalize their markets.
BUT this trend only captures the AVERAGE. What it hides is that liberalization also increases market
Transaction costs p7
Dealership in goods and services cost money (information + negotiation costs money)
Lawyer fees + lobbyist
50% of US GDP was absorbed by transaction costs
o Lawyers, lobbyist, accountants, personnel relations, inspectors, ju
Its about consensus not quality.
Legal title doesnt really give poor homeowners more access to credit (as de soto suggests) because they
are too poor. However, it converts their property into savings and hence, enabling them to invest more i
Initial increase in wealth of the rich
As marginal productivity of capital declines, wages of labour start growing.
Resulting institutions conditioned by whether or not the Europeans intend to migrate an
Focus on intellectual development rather than trading for economic gains.
Your future is predetermined.
Prosperity on Earth was viewed as divine favour.
Work ethic = the more prosperous you are, the more likely you are going to be rewarded by