13. Inconsistent with data
• What the Solow model predicts
• Capital should flow Rich Poor
• What really happens
• in 1990, the richest 20% got 92% of
• The poorest 20%? 0.1%
14. So then what about the
• Some cases when capital was used and it
led to growth in one country but not in the
• Conclusion: Capital cannot be a reliable
source of economic growth
15. He talks of Nigeria and
• Are the outputs the same?
• Because if they aren’t, apples vs. oranges?