Solomons Knot
：How Law Can End the Poverty of Nations
( The Kauffman Foundation Series on Innovation and Entrepreneurship )
Publication subTitle ：How Law Can End the Poverty of Nations
Publication series ：The Kauffman Foundation Series on Innovation and Entrepreneurship
Author： Cooter Robert D.;Schäfer Hans-Bernd;;
Publisher： Princeton University Press
Publication year： 2011
E-ISBN: 9781400839681
P-ISBN(Paperback): 9780691147925
Subject： D8 Diplomacy, International Relations;D9 Law;D922.28 金融法;D922.291.92 破产法;D996.2 International Law of Finance;F Economic;F0 Economics;F1 The World Economic Profiles , Economic History , Economic Geography;F2 Economic Planning and Management;F4 Industrial Economy
Keyword： 外交、国际关系,法律,经济学,经济计划与管理,工业经济,世界各国经济概况、经济史、经济地理
Language： ENG
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Description
Sustained growth depends on innovation, whether it's cutting-edge software from Silicon Valley, an improved assembly line in Sichuan, or a new export market for Swaziland's leather. Developing a new idea requires money, which poses a problem of trust. The innovator must trust the investor with his idea and the investor must trust the innovator with her money. Robert Cooter and Hans-Bernd Schäfer call this the "double trust dilemma of development." Nowhere is this problem more acute than in poorer nations, where the failure to solve it results in stagnant economies.
In Solomon's Knot, Cooter and Schäfer propose a legal theory of economic growth that details how effective property, contract, and business laws help to unite capital and ideas. They also demonstrate why ineffective private and business laws are the root cause of the poverty of nations in today's world. Without the legal institutions that allow innovation and entrepreneurship to thrive, other attempts to spur economic growth are destined to fail.
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