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In this paper Professor Leandro Prados de la Escosura argues that substantial gains in world human development have been achieved since 1870, but research shows that the main improvement actually occurred between World War I and 1970.

Despite initial successes in lifting human development, the socialist experiments of the 20th century failed to sustain momentum and then (with the exception of Cuba) stagnated and fell behind prior to the socialist model's ultimate demise.

The authors stress that the key to sustained economic development is continuous policy reform.Although taxes may discourage some economic activity, the problem in low-income countries is typically lack of capacity and under-enforcement, rather than over-taxation.The speakers will argue that in a historic reversal of fortunes, China has overtaken the territory of the former Soviet Union in GDP per capita.The tendency of small firms to remain in the informal sector may have an even more pervasive detrimental impact on growth than one might expect.Their informal status usually allows them to avoid taxes by keeping costs and revenues off the books.

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