We reviewed the challenges of jump-starting economic growth in poor countries a while back, including Paul Romer‘s efforts in Honduras. Here’s a wonderful podcast from NPR’s Planet Money with quotes from the principals. And here’s Paul’s TED talk. The bottom line, I think, is that it’s incredibly difficult to overcome bad institutions: a corrupt system has many ways to resist reform. And Honduras is still an incredibly poor country.
If you find this interesting, Paul teaches a course on related topics in our MBA program every spring. Syllabus here.