Article: Why Governments Waste Natural Resources:Policy Failures in Developing Countries.

Why Governments Waste Natural Resources: Policy Failures in Developing Countries. By Willia Ascher. Baltimore, MD: Johns Hopkins University Press, 1999. Pp.xi + 333. $59 and $17.95. ISBN 0 8018 6095 4 and 6096 2

This book is about how resource rents are captured, focusing on strategies mainly orchestrated by agents working within state agencies, government ministries or public enterprises, and how these rents are used for pursuing agendas which often imply costly departures from what economists would call 'first-best' Pareto-efficient allocations. The author refers to the policy strategies causing these costly departures as 'wasteful', 'unsound', 'distorted' or ...

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