Aid as the Catalyst for Reduced Trust in Governmental Institutions
A recent article on the Economist magazine makes a very direct (if rather obvious, on the second thought) argument that try to pinpoint why underdeveloped states do not attract resources for development. The article states "lack of trust," particularly on societal institutions, as the root cause of economic failures. Specifically, in underdeveloped states, there is complete lack of popular confidence that bureaucracies will function as they are created for , laws will be enforced as written, and any written agreement will be honored as stipulated in their terms.