Building Entrepreneurial Economies

Carl J. Schramm, President and Chief Executive Officer of the Ewing Marion Kauffman Foundation, writes this great piece in Foreign Affairs - Building Entrepreneurial Economies, and makes the point that we are often too focused on macroeconomics when it comes to attempts to nurture capitalism in developing economies. We should be much more focused on encouraging entrepreneurialism.

Summary: The "Washington consensus" approach to development -- which urges other countries to emulate American capitalism -- misses one vital ingredient: the role that entrepreneurs play. Jump-starting growth in the developing world will require an understanding of the American entrepreneurial system, which involves four sectors of the economy.