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The And Institutions : The Key Of Development

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Statehood and Institutions: The Key to Development

There were two possible solutions to the issue of growth: a social solution and an ideal

solution. The social solution is based on kinship and culture, which proved to work in certain

societies, but was more of a short-term situation. Relying on kinship became unstable.

Additionally, the steady growth of population size and increasingly complex nature of large

groups of people were not compatible with the kinship model. The formation of a state emerged

gradually. Instead of a completely egalitarian system, a centralized government emerged along

with a rule of law, social stratification, a division of labor, and the provision of public goods. The

success of the modern state is still evident, as many developed countries in place today follow a

similar model. Statehood and the institutions established within them provide a stepping stone

for positive development.

Some people view the state as essential for development. Instead of relying on a social

solution, the ideal solution is to create a state. These states were formed because roaming bandits

were stealing from small farmers and the robbers left the farmers with no incentive to produce.

The state essentially became the first major form of protection for the individuals in a society.

The state offers order and security, which let people feel more comfortable to participate in

society. The bandits slowly learned that the smart thing to do is to be stationary

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