Here is a new batch:. Mentioned in the Abidjan Real Estate post. What are the various components? Making wealth is not the only way to get rich.
For most of human history it has not even been the most common. Until a few centuries ago, the main sources of wealth were mines, slaves and serfs, land and cattle, and the only ways to acquire these rapidly were by inheritance, marriage, conquest, or confiscation. Naturally wealth had a bad reputation. Two things changed. The first was the rule of law. But in medieval Europe something new happened.
A new class of merchants and manufacturers began to collect in towns. Together they were able to withstand the feudal lord. This was naturally a great incentive, and possibly indeed the main cause of the second big change, industrialization. A great deal has been written about the causes of the industrial revolution.
But surely a necessary, if not sufficient, condition was that people who made fortunes be able to enjoy them in peace. One piece of evidence is what happened to countries that tried to return to the old model, like the Soviet Union, and to a lesser extent Britain under the labour governments of the s and early s. Take away the incentive to wealth, and technical innovation grinds to a halt. For a very long time incentives to create wealth in most of Africa have been quite lousy β warriors and politicians regularly squashed entrepreneurs.
Ouattara is turning 70 years soon, and is not going to be there forever. Wealth created by entrepreneurs should contribute to increasing the size of the middle class which in turn is great for strengthening the civil society and democratic institutions.
