Year: 2000
Type: report
Abstract: This paper opens with a discussion of the types of institutions that allow markets to perform adequately.While we can identify in broad terms what these are, there is no unique mapping between markets and the non-market institutions that underpin them.The paper emphasizes the importance of "local knowledge," and argues that a strategy of institution building must not over-emphasize bestpractice "blueprints" at the expense of experimentation.Participatory political systems are the most effective ones for processing and aggregating local knowledge.Democracy is a meta-institution for building good institutions.A range of evidence indicates that participatory democracies enable higher-quality growth.
DOI: 10.3386/w7540
Author: Dani Rodrik
Institutions: National Bureau of Economic Research, Harvard University
Language: English
Subfield: Demography
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3020979170