Fall 201434 / 46

The economic aftermath of World War II in Europe is normally studied through the lens of reconstruction. However, many contemporaries saw “backwardness” as the main social and economic issue in several European regions.

• Joseph E. Stiglitz, University Professor, Columbia University
• Bruce Greenwald, Robert Heilbrunn Professor of Finance and Asset Management, Columbia University

It has long been recognized that an improved standard of living results from advances in technology, not from the accumulation of capital. It has also become clear that what truly separates developed from less-developed countries is not just a gap in resources or output but a gap in knowledge. In fact, the pace at which developing countries grow is largely a function of the pace at which they close that gap.