Daniel J. Choi

“Institutions” and Economic Development

Academic

This paper was written for Economics 1339: Generating Wealth of Nations, a Harvard undergraduate course taught by visiting professor Jeffrey Borland.

Introduction

Defined by Douglass North as the “humanly devised constraints that shape human interaction,” institutions understandably affect many aspects of society, and as such they are often placed at the center of studies regarding the causes of economic development. Indeed, institutions play a strong, if not causal role in economic growth. Though their influence alone cannot explain all economic development, institutions in its various forms are, at the very least, one of the necessary pre-conditions of economic growth and key accomplices of economic stagnation.

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Liberia: America’s “Settler State”

Academic

This paper was written for Economics 1339: Generating Wealth of Nations, a Harvard undergraduate course taught by visiting professor Jeffrey Borland.

Introduction

Despite its abolishment of the international slave trade in 1808, America in the period following the American Revolutionary War was home to an ever-increasing population of both free and enslaved African Americans. This growing demographic posed a threat to the white community, which was concerned about the implications of black assimilation into American society. Many northerners were afraid of free blacks taking their jobs, while slave owners in the South were concerned that the presence of freedmen living in slave states would encourage slave revolts and runaways. In response, some proposed an expatriation of African Americans to colonies in Africa, which would grant blacks their freedom and whites their peace of mind. This idea took hold, and in 1816, the American Colonization Society (ACS) was formed with the mission to facilitate the establishment of such settlements. In addition to the central goal of mitigating white-black tensions in America, the operation also aimed to “civilize” and evangelize African natives. The ACS also stressed the economic benefits of establishing trade agreements with the African populations via colonies, which would secure for American merchants trade currently monopolized by Europeans. In 1819, when the ACS received funding from Congress, the enterprise began in earnest, and the first of many ships set sail for West Africa, with three white ACS agents and 88 emigrants on board. Over the next few decades, the ACS would work closely with the Liberian colonies in a struggle to establish permanent, self-sufficient settlements.

Prior to the 1830s, the US government only maintained an official interest in Liberia insofar as it served as an outpost from which to execute America’s anti-slave trade campaign. The Monroe Doctrine, which stymied international involvement between the Eastern and Western hemispheres, prevented the government from taking a more direct interest in Liberia’s internal affairs. Instead, the American Colonization Society maintained control over the territory’s administration until 1838, when Liberia proclaimed itself a self-governing commonwealth. This declaration of sovereignty was prompted by criticism that accused the ACS of attempting to acquire an empire as well as the ACS’s own financial problems. At this point, ACS still maintained some control over Liberia’s internal affairs, but its political and commercial influence waned substantially. In 1847, Liberia declared itself a Republic and legislative powers found themselves in the hands of the settlers. This paper examines the ways in which government policy affected the economic growth of the Liberian settler society from the early periods of its settlement in the 1820s to the worldwide depression in the latter part of the 19th century.

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Catch-up and Convergence: Leaders and Followers

Academic

This paper was written for Economics 1339: Generating Wealth of Nations, a Harvard undergraduate course taught by visiting professor Jeffrey Borland.

Introduction

The convergence hypothesis at its most fundamental level posits that countries with lower productivity will tend to grow at faster rates than their more productive neighbors. This theory follows directly from the law of diminishing returns, which explains that the marginal output of a production factor progressively decreases as the factor is increased. Following this logic, a less productive country can exploit the same techniques utilized in more productive countries to achieve a greater output for any given level of input. While theoretically sound, the convergence hypothesis relies upon one key assumption that is not brought to bear in the real world – either no other determinants of productivity growth exist, or countries with varying productivities are equal in all other aspects. Empirical evidence runs contrary to both possibilities. For example, in the period from 1870 to 1913, America continued to increase its already well-established lead in productivity, while the average productivity level of laggard countries in Europe fell. Following the Second World War, however, Europe’s rapid growth and convergence with the United States seems to validate the hypothesis. These discrepancies imply the existence of other important determinants of growth. This paper seeks to examine the mechanisms by which convergence occurs to uncover the characteristics that explain why some laggard countries experience accelerated growth rates, why others with high productivity remain leaders, and why still others fail to ever catch up.

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How Hindu Attitudes and Institutions Shaped India’s Economic Growth

Academic

This term paper was written for Economics 1776: Religion and the Rise of Capitalism, an undergraduate course taught at Harvard College by Benjamin Friedman.

Introduction

Hinduism has no single authoritative scripture from which its believers derive meaning. Unlike the Christian and Jewish traditions, its history does not begin at a singular point or event in history (á la “In the beginning God created the heavens and the earth.”). Neither does there exist in the religion a single mode of worship or even a single object of worship. Its disciples draw upon numerous canons, and as a result, within the umbrella term of Hinduism myriad contrasting schools of thought have existed. For this reason, if it hopes to reach meaningful conclusions, an analysis of Hinduism’s effect on India’s economic development must refrain from a holistic study and must focus on specific components of the greater religion. Vikas Mishra writes of this intricacy, “It is almost naïve to treat Hinduism as one entity. For instance, the economic implications of the ‘Dayabhag’ School of Hindu Law are vastly different from those of the ‘Mitakshara’ School.” Polarizing features can also be discovered in countless other comparisons of Hindu belief sets. For example, the Carvaka school championed materialism while the Ascetic tradition emphasized an aversion toward physical comforts. Interestingly, both beliefs find basis in Hindu scriptures. This disparity between schools of thought in Hinduism complicates the issue at hand.

This study attempts to establish an analysis of the correlations and possible causations regarding certain Hindu beliefs and India’s economic history. It seeks not to make sweeping generalizations about Hinduism, but rather to concentrate on specific aspects of the religion as they relate to the nation’s secular development. To that end, this paper will examine various attitudinal and institutional characteristics of Hinduism and will be generally structured by the enumeration and discussion of these concepts. In doing so, it may be enlightening to also examine within this context other closely related religions such as Buddhism and Jainism. This is by no means an all-encompassing study, but it does address many important connections between Hindu beliefs and structures and India’s economic development.

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© 2026 Daniel J. Choi

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My friends call me Dan.

Currently, building Recca.

Previously, co-founder @ Plastiq.

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