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This discussion was recorded at the Hoover Institution for use at a conference at Princeton University, "How Does Development Happen? A Conference in Tribute to Peter Bauer," May 6-8, 2004--Ed. Friedman: Tom Sowell and I are glad to be able to participate in your discussion of Peter Bauer's work at long distance. Peter was a close personal friend of mine and we are all upset at his early demise. His work was important and will live on.