developed

Investors face a quandary. Cash offers a return of virtually zero in many developed countries; government-bond yields may have risen in recent weeks but they are still unattractive. Equities have suffered two big bear markets since 2000 and are wobbling again. It is hardly surprising that pension funds, insurers and endowments are searching for new sources of return.

Access to finance is deeper and wider under better institutions (more transparency, better property rights) in more developed financial markets, and in an environment less distorted by taxes, unnecessary regulations, and other avoidable costs.

We shall, however, obtain a clearer view of the question if we consider the superstitions of those races which have a rudimentary religion, and endeavour to trace these ideas up into a more developed condition.