Theories, however, cannot explain why some countries succeed while others fail in transforming natural resources to higher productivity and growth; the answer probably lies in the institutional environment of a country. If institutions promote transparency and incentivise productive and entrepreneurial activities and protect property and other rights of individuals, natural resources are likely to impact the economic outcomes positively.
The link between nutrition and economics has been analyzed by economists since a long time. The notion that poverty causes malnutrition dates back at least to Adam Smith and income is still the main explanatory variable in most contemporary attempts to explain poor nutrition.
There exists a serious disconnect between abstract economic theory, and real world experiences, simply because over centuries, economists have been obsessed with formalising Adam Smith’s proposition of an invisible hand – at the most redefining its contours and expanding its realm, but sticking to its basic tenets.
The advent of Big Data analytics has had a tremendous say in the operation and importantly the prices at which many services operate in the 21st-century economy.
Adam Smith, the 18th century father of modern economics, said that the very motivation of the participants in a market…
