Institutional economics Archive
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What is expropriation in Acemoglu’s work?
Posted on December 11, 2008 |Acemoglu and team have authored a set of influential papers arguing that colonial experience has had a lasting influence on the growth rates of countries well after colonisation through the lasting impact they have had on institutions. Apart from very neat econometric estimations testing of their hypothesis and evaluating them against a variety of alternate thesis, they also draw attention to a host of historical literature on this subject. All this is very impressive. They make a spirited argument that countries with extractive institutions have done poorly in terms of growth. This is where their work starts getting under-defined and... -
Review of Easterly’s Elusive quest for growth
Posted on December 11, 2008 |Book: The Elusive Quest for Growth: Economists’ Adventures and Misadventures in the Tropics Author: William Easterly Magnanimity of IMF and World Bank leads to policies unfavourable to poor people – The Fund and the Bank did not go far enough, argues Easterly The Elusive Quest for Growth by William Easterly reviews various theories of growth and the consequent efforts by World Bank and IMF. As the title indicates he looks at how these approaches ‘failed’ and traces some reasons for their failure. The book is interspersed with live accounts of little cases (“intermezzo”) from the field to animate the discussion.... -
Easterly’s critique of cash for condoms: a case of poverty of economic approach
Posted on December 11, 2008 |In his famous book Elusive quest for growth William Easterly criticizes World Bank’s attempts to control population. But his ‘economic approach’ and failure to get contextual information makes his analysis poor and prescriptions dangerous. For an overall review of the book, click here Critique of ‘unwanted babies thesis’ The key theme of The elusive quest for growth is ‘people respond to incentives’. This is a statement that will find broad agreement – but the devil is in the details. In a chapter titled Cash for Condoms? Easterly discusses efforts by World Bank to contain population growth in various countries. He... -
Collected works on Anthropology and institutional economics
Posted on December 11, 2008 |Book: Anthropology and institutional economics Editor: James M. Acheson This volume is one of the rare collection of papers I found looking at Anthropology and institutional economics. Surprisingly, though the two have a large scope for collaboration, there is very little work happening between these two disciplines, to my knowledge. This volume provides a useful introduction. The book starts with an introduction about Anthropology and Institutional economics by James Acheson. This is followed by an essay on New Institutionalism by Robert Bates. The best part of the book is made up of case studies divided into three sections (1) Transactions... -
Institutions for an unequal world: Talk by Ha Joon Chang
Posted on December 3, 2008 |In this very entertaining talk, Ha Joon Chang argues against mainstream trade theories. He argues that most of the success stories, including the USA followed practices that are rejected by the current trade theories and that those who followed the policies have actually not done well. Ha Joon Chang argues this from an institutional perspective and makes a case for “infant industry argument”. While these arguments themselves are not too new, he brings in a lot of historical information that were new to me and gave me many “ah ha” moments. This entertaining and passionate talk is also delivered with... -
Basics to understand institutions & institutional change
Posted on November 27, 2008 |Basic components of an institutional understanding (Evolving note) Someone who has an interest in understanding the role of institutions in development, or institutional change will find it difficult to go about the task by ‘decoding’ the rules of the game and analysing them. The sheer mass of rules in any society will be overwhelming and will not be amenable to such analysis. Even that would be of limited help in understanding on how they operate. A more profitable approach would be to look at formative influences of institutions that are likely to have widespread influence. In this post, I look... -
Development as freedom: Amartya’s importance for ID
Posted on November 23, 2008 |Book: Development as Freedom Author: Amartya Sen This is a world of unprecedented opulence, which coexists with remarkable deprivations. Overcoming these deprivations is central to development. Sen argues that individual agency is key to addressing these deprivations, but it should be recognised that agency is constrained by social, political and economic opportunities. Sen argues for “integrated analysis of economic, political and social activities involving a variety of institutions and many interactive agencies”. In my opinion Amartya Sen offers the most sophisticated view of institutions and their relevance for development; Development as freedom is the culmination of many decades of his... -
Designing a course on ID: Syllabus collection
Posted on November 23, 2008 |Any course on the role of institutions in development has to cross disciplinary barriers. Since most social sciences have something to say on this topic, there are a lot of resources to borrow from. This page presents a collection of syllabi from different universities that can inform syllabus design on institutions and development. This is an expansive list for exploratory purposes. A concise list with my ideal syllabus will be developed elsewhere. Institutions, policies & development This course combines development theories and institutional theories and offers a broad selection of topics on institutions and development. When I reviewed courses in... -
World systems theory and institutional economics
Posted on November 23, 2008 |Economists have done numerous studies trying to relate the institutions of a country to economic growth there. This has been used to argue that institutional quality of a country matters for its growth. Is a country the relevant unit of analysis? Sociologist Immanuel Wallerstein argues that the world should be taken as one system. Interestingly a spate of recent works by mainstream economists begs us to take this approach seriously. Colonial impact on institutional set up A series of recent works in institutional economics have looked at the colonial impact on institutional formation. Based on a dataset of mortality of... -
Colonisation & Social cohesion
Posted on November 23, 2008 |Many sociologists have argued that caste system in India underwent a fundamental change with the advent of British rule. I did not understand what it meant till I saw colonisation at work in Iraq Concepts like social cohesion and trust have been central to the study of institutions in politics and in economics. It has been argued widely that a society that is more cohesive (or where people tend to trust each other) tends to perform better. This argument has been used in explaining economic growth, political stability, industrial productivity, functioning of markets, among other things. I subscribe to the...
