power and politics play a role in every society, rich or poor, Bates argues it is the reorganization of coercion--not its extinction--that underpins the security needed for investment. Although history makes clear that political structures can be used for destructive ends, it also demonstrates their importance in ensuring the peace needed for prosperity. In this revised edition, Bates strengthens his critique of development studies and development agencies, basing it on his analysis of the nature of states that emerged following WWII.

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