Congratulations to @DAcemogluMIT, @baselinescene & James Robinson on their @NobelPrize in Economic Sciences. While their work on institutions is important, it's crucial to remember that development is complex.
As @yuenyuenang, @mushtaqkhan100 & Ha-Joon Chang argue, effective institutions must be context-specific, not just replicas of Western models.
Truly inclusive and sustainable institutions should be embedded in local realities, learning from the full array of conditions necessary for development.
Congratulations to @DAcemogluMIT, @baselinescene & James Robinson on their @NobelPrize in Economic Sciences. While their work on institutions is important, it's crucial to remember that development is complex. As @yuenyuenang, @mushtaqkhan100 & Ha-Joon Chang argue, effective institutions must be context-specific, not just replicas of Western models. Truly inclusive and sustainable institutions should be embedded in local realities, learning from the full array of conditions necessary for development.
Under-appreciated fact: today’s Nobel is, in large part, given for formally introducing class struggle into mainstream theory and empirics of economic growth and political development.
Their models of democratization and much of their historical analysis is effectively an argument that in some places, historical circumstances drove bargaining power... See more
Their models of democratization and much of their historical analysis is effectively an argument that in some places, historical circumstances drove bargaining power... See more
Chris Blattman • Tweet
Congrats to AJR! They are brilliant.
But I don't agree with their idealized portrayal of institutions in Western development
It is historically inaccurate, if not ideologized
Thus, not only do they struggle to explain China, they also can't explain why Western economies like the US prospered despite being as corrupt as China is today
But I don't agree with their idealized portrayal of institutions in Western development
It is historically inaccurate, if not ideologized
Thus, not only do they struggle to explain China, they also can't explain why Western economies like the US prospered despite being as corrupt as China is today
Yuen Yuen Ang • Tweet
And therefore to the extent that business-friendly institutions have something to do with fixing market failures, Acemoglu, Johnson, and Robinson were right too.
Esther Duflo • Good Economics for Hard Times
Why Nations Fail is a bit longer than The Communist Manifesto , but it is essentially The Bourgeois Manifesto . Merchants having become wealthy from the Atlantic trade win property rights in England, already primed for this breakthrough. Resultant regime called inclusive , though the merchants were primarily slavers.
They will underline however tha... See more
They will underline however tha... See more
Rakesh Bhandari • Tweet
Instead of presuming that optimal institutional solutions can be designed easily and imposed at low cost by external authorities, I argue that "getting the institutions right" is a difficult, time-consuming, conflict-invoking process.
Elinor Ostrom • Governing the Commons: The Evolution of Institutions for Collective Action (Political Economy of Institutions and Decisions)
sari added
Selon l’économiste Daron Acemoglu et le politologue James Robinson, tout dépend d’un point : les institutions économiques et politiques du pays sont-elles inclusives ou extractives ? En deux mots, les institutions inclusives offrent à beaucoup de gens leur mot à dire dans la prise de décision, alors que les extractives privilégient la voix de quelq
... See moreKate RAWORTH • La Théorie du donut
“Economic institutions shape economic incentives, the incentives to become educated, to save and invest, to innovate and adopt new technologies, and so on. Political institutions determine the ability of citizens to control politicians.”5
Abhijit V. Banerjee • Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty
I had an exchange this week about the importance (indeed, primacy) of economic growth in development. I’ve had many such exchanges over the last few years, and at some point they all turn to the same point: even if this is true, what can we do about it? I used to say that growth is hard, not complicated: more like playing the trumpet than building ... See more
Economics & Marginalia: May 3, 2024 | Center For Global ...
Lindsay added