Professor Timothy John Besley, W. Arthur Lewis Professor of Development Economics at London School of Economics and Political Science (LSE) delivered 21st Zahid Hussain Memorial Lecture on State Capacities for delivering Higher Economic Growth organized by State Bank of Pakistan.       Introduction The State Bank of Pakistan organizes each year a lecture in the honor of its first Governor Mr. Zahid Husain. The lecture is delivered by renowned economists, especially from advance Countries. This year's lecture, 21st in series, was delivered by Professor Timothy John Besley of London School of Economics and Political Science (LSE), on State Capacities for Delivering Higher Economic Growth on December 12, 2016. In his lecture, professor Besley shed light on the role of state capacities stimulating economic growth. He defined the state capacities as ?the forms of capital which make the government work more effectively?. He discussed three types of state capacity namely fiscal capacity, legal capacity and collective capacity. He argued that these capacities are built up over time, co-evolve and complement each other. He explained the process; the fiscal capacity supports legal capacity; the legal capacity supports collective capacity and then collective capacity supports fiscal capacity completing the loop. The Governor, State Bank of Pakistan gave a welcome address highlighting the role of strong and quality institutions, efficient allocation of resources, promotion and protection of new knowledge and infrastructure development in furthering the growth agenda of the state. He also highlighted the role of State Bank of Pakistan in solidifying state efforts to achieve a higher and sustainable economic growth in Pakistan. The seminar was attended by policy makers, financial sector specialists, researchers, government officials, heads of commercial banks, eminent businessmen and representatives of academia and the media. Justice (retd) Mr. Nasir Aslam Zahid, son of (late) Mr. Zahid Husain graced the occasion as chief guest. Program Details Monday, 12 December, 2016 at Marriot Hotel Karachi Recitation from the Holy Quran Documentary on History of SBP Opening remarks by Mr. Ashraf Mahmood Wathra, Governor SBP Keynote lecture by Professor Besley Q,&A. Session Closing Remarks by Governor SBP Lecture Notes		Professor Timothy John Besley's Lecture