The economies of poor and developing countries often depend almost exclusively on a single product—perhaps timber or coffee—or on a handful of products at most. That’s hardly a startling observation, but what’s puzzled economists over the years is why it’s been so difficult for these countries to start up new activities in the hope of spurring economic growth and lifting themselves out of poverty.
While there have been a few success stories, such efforts have often ended up consuming heaps of money to little lasting effect.