Political Institutions

The Institutional Diagnostic Project case study on Bangladesh and Mozambique is an attempt to explain the paradox of sustainability of the former and the disappointed hopes of the growth of the latter.

This presentation reviews and summaries results from research done under RA4 research theme of our programme.

Outline of the presentation Objective, methodology and development of the project The synthesis volume and concluding chapters a) Identifying obstacles to development: economic perspective b) Identifying institutional obstacles: the role of politics c) Identifying institutional obstacles: state capacity and property…

Two central lessons can be drawn from the foregoing analysis. First, many institutional failures are traceable to the way politics functions. Therefore, any diagnosis or understanding of the impediments to a country’s long-term development that overlooks the country’s political economy…

After having examined the role of politics (in last chapter) in spurring or slowing down structural transformation and development, we are now ready to probe the issue of state capacity. This will complete our discussion of the role of governance-related…

In this chapter, the focus is on issues that involve politics. More specifically, we look at the role of political leadership and state autonomy in development. The institutions involved determine the quality of governance in a country, but they are…

Whether in the four case study countries or in the successful development stories of South Korea and Taiwan at the time when they were at a comparable level of income per capita, the issue of development consists of providing the…

This last part of the volume puts together the lessons learned from the in-depth case studies undertaken within the Institutional Diagnostic Programme (IDP), and the more cursory analysis of the success development stories of South Korea and Taiwan at about…

There are several reasons why development scholars should be interested in the case of Taiwan. As one author has written: ‘It once had a single dominant party following the Leninist model; it now has a competitive multiparty system. It was…

‘What would have been the conclusion of an institutional diagnostic of the development potential of South Korea conducted in the mid- or late-1970s, at a time when the country was still a low-income country, at roughly the same income level…

There are several reasons why Benin is an interesting country to study, and some of them have no doubt contributed to making it an aid darling for many donors. First, although it is made up of an extraordinarily varied mosaic…

At the core of the institutional diagnostic project is the idea that we can gain more knowledge about the role of institutions by undertaking in-depth country case studies than by carrying out broad quantitative exercises based on a large sample…

The preceding chapter defined the objective of the institutional diagnostics of each particular country and made explicit the concepts and analytical principles that need to be mobilised in order to conduct such an exercise. By providing a short description of…

The ‘institutions matter’ slogan appears today as a fundamental truth about development. Widely shared by the development community, including international organisations, it goes with the idea that the benefits of both market operations and state interventions are significantly conditioned by…

If there is absolutely no doubt that institutions matter for development, and for development policies and strategies in the first place, the crucial issue is knowing how they matter. After all, impressive economic development achievements have been observed despite the…

Authoritarian regimes often direct the course of electoral politics in ways that allow them to concentrate and consolidate power (Geddes, 1999; Svolik, 2012; Gandhi and Przeworski, 2007; Gandhi, 2015). While a growing body of literature has devoted attention to studying…

Following decades of colonialism and a violent political history, Uganda has reached a state of relative stability and economic growth.  The Ugandan decentralization reform initiated in 1992 is exceptional among developing countries in terms of the scale and scope of…

Authoritarian regimes often direct the course of electoral politics in ways that allow them to concentrate and consolidate power. This observation applies well to Pakistan and its three military regimes: Ayub, Zia, and Musharraf. The political reforms enacted by General…

Political selection can be crucial to the quality of governance. Yet our general knowledge of the individual characteristics that determine who becomes a politician remains scant – primarily due to data limitations. Dal Bo and Finan (2018) emphasize how the…

This synthesis paper draws together the salient elements emerging from the RA4 case studies research, and from three thematic synthesis papers written by members of the RA4 Scientific Committee, Jean Marie Baland and Catherine Guirkinger, Dilip Mookherjee, and Christopher Woodruff….

This paper serves as a companion paper to the Economic Development and Institutions’ (EDI) White Paper “At the Intersection: A Review of Institutions in Economic Development” (Dal Bó and Finan, 2016). The White Paper reviewed nearly 200 publications from economics…

In this paper, we investigate how media owners react to changes in the political importance of vote choices — voting power — in different areas. Whereas “one person, one vote” is often considered the guiding principle of democracies, there is…

While political dynasties are pervasive across developing countries we have limited knowledge of their impact on economic development. We probe this in a context where electoral politics is both competitive and clientelist. Leveraging novel databases on political genealogies and local…

In this paper, we estimate the impact of dynastic families on local development in Pakistan’s largest province, Punjab. Toward this purpose,we compile an original database on political genealogies, which includes information aboutthe personal and family characteristics of both elected representatives…

Throughout history, Rulers have always faced challenges to their rule. These challenges came either from outside aggressors, popular uprisings or Elite conspiracies. The ability of Rulers to respond to these challenges has varied a lot across countries and across time….

Studies examining expenditure policies of local governments (panchayats) in India have found evidence of failure to target benefits to poor regions or households. This mis-targeting can be either in the form of diversion to local elites, or forms of political…

Past research has provided evidence of clientelistic politics in delivery of program benefits by local governments (gram panchayats (GPs)), and manipulation of GP pro- gram budgets by legislators and elected officials at upper tiers in West Bengal, India. Using household…

Abstract: Historical narratives suggest that general differences exist in the power structure of society between Imperial China and Premodern Europe: the Ruler enjoyed a weaker absolute power in Europe, while in China the People were more on par with the…

Abstract: What are the determinants of news media consumption? In this paper, we investigate whether it is determined by political motives. We build a new panel dataset on Indian publications at the city level between 2002 and 2017. We exploit…

Abstract: This document is the second of two progress reports that provide an overview of the progress made on the DFID RA4 project “Social structures, political accountability, and effective public goods provision.” Our study is interested in better understanding how…

Abstract: We study the role of traditional institutions of tribes and clans – large groups of people sharing an identity based on common lineage – in determining long-run differences in economic trajectories at sub-national level. Using a combination of rich…

Abstract: We study the long-run persistence of relative economic well-being in the face of highly adverse government policies using a combination of rich historical and contemporaneous data sources from Kyrgyzstan. Even after controlling for unobservable local effects, the economic well-being…

Mozambique Institutional Diagnostic Chapter 12: Natural resources, institutions, and economic transformation in Mozambique Abstract: In the light of Mozambique’s natural resources boom—especially its large-scale investments in mining, oil, and gas—this paper analyses the prospects for the extractive industries to contribute…

Mozambique Institutional Diagnostic Chapter 11: Donor relations and sovereignty Abstract: As a sovereign country, Mozambique initially relied on international solidarity and managed its donor relations well. Donor dependency entailed some loss of agency for the government as it allowed donors…

Mozambique Institutional Diagnostic Chapter 8: Decentralization reforms in Mozambique The role of institutions in the definition of results Abstract: With the introduction of the economic reforms in the late 1980s, the opening up of the political arena and the end…

Abstract: Most enlightenment philosophers argued that the separation between Church and State would prevent capture of resources by one state religion. We formalize and test a theory that addresses a different danger. We demonstrate that a reduction in the separation…

Abstract: Are ordinary citizens or political party leaders better positioned to select candidates?  While the American primary system lets citizens choose, most democracies rely instead on party officials to appoint or nominate candidates.  The consequences of these distinct design choices…

The Judiciary, through providing protection of property rights, constraining government abuse, and enforcing contracts, plays a key role in institutional, political, and economic development. Religion, too, has largely influenced institutions, politics, and economic development. Yet not much is understood on…

This research elucidates the willingness of an autocrat to push through institutional reforms in a context where traditional authorities represented by religious clerics are averse to them and where the military control the means of repression and can potentially make…

This EDI Research Insight publishes early stage results from a study designed to explore questions about  representation, accountability and performance among government officials in Sierra Leone. As in many developing countries, in Sierra Leone the process of selecting candidates often…

This introductory chapter the the Benin Institutional Diagnostic provides a contextual overview to the publication under five main topics: ‘Institutions matter’ How institutions matter in development policy today Searching for evidence on the quality of institutions and development Institutional diagnostic…

This EDI Working Paper arises from the research undertaken for a case study on “Discretion versus rule-based budgeting and assignment in Indian governments“. The study shows how political support of household heads respond to receipt of different private and public good…

Gianmarco León on pay-for-performance (P4P), which has been shown to be effective in job performance in both private and public organizations. The research examines how incentives affect performance when they are implemented across multiple layers of an organization – from…

Tanzania Institutional Diagnostic Chapter 8: Synthesis This chapter provides a synthesis of information and arguments developed in the first seven chapters of the Tanzania Institutional Diagnostic. Chapter outline Part 1.  The basic institutional constraints on Tanzanian development The main challenges…

Tanzania Institutional Diagnostic Chapter 1: Reflections on the political and economic development of Tanzania Chapter outline A short account of the political history of Tanzania The colonial era The German colonisation The British mandate on Tanganyika Independence Forging a nation: the…

François Bourguignon and Sam Wangwe provide an introduction to the analysis produced for the Tanzania Institutional Diagnostic. The authors outline three approaches have been developed to identify the institutional factors hindering development or ways of remedying specific factors: historical case studies;…

A presentation by Ernesto Dal Bó and Federico Finan, University of California, Berkeley This presentation was part of the convening event hosted by CEGA at the University of California, Berkeley, in August 2018. Read a summary of the event.  

Where does the evidence stand on institutions, development and growth? This paper explores the empirical evidence on institutions and growth. The empirical evidence on institutions ranges from historical studies to econometric analyses, with different studies making very different theoretical commitments…

This policy brief reflects on the EDI Path-Finding Paper, “The dynamics of family systems: lessons from past and present time,” written by Catherine Guirkinger and Jean-Philippe Platteau. It exposes the main lessons from salient studies that have estimated the effects…

This paper provides an overview of the literature on political clientelism  and its relation to economic development. It starts by describing the range of mechanisms used by political operatives to monitor how specific voters vote in order to target clientelistic…

This brief, based on Klasen’s path-finding paper titled ‘Gender, Institutions and Economic Development: Findings, Open Research and Policy Issues’ focuses on the way he treats gender gaps as the outcome of institutional features, formal and informal.  And on how formal institutions, informal…

This paper reviews and discusses the literature on formal institutions and development. We first discuss the mapping from institutions to economic development, with the main emphasis on the effect on economic growth. We thereafter discuss two main literatures on endogenous…

Institutions are commonly defined as the rules of the game that societies play which in shared understanding act as constraints on and guidelines for economic performance. This paper provides an overview of case studies from the two largest developing countries,…

A next step forward in examining economic growth and institutions is examining the frequency, timing and magnitude of “growth episodes”—discrete accelerations and de-celerations in medium to long run growth.  This will be challenging as to the extent that very long-run…

This paper reviews and synthesizes current knowledge on the role of institutions on firm financing and growth in developing countries. First, the paper presents stylized facts on the different institutional constraints under which firms in developing countries operate. Next, the…

This paper surveys the literature on the two-way relationship between development aid and the quality of institutions in developing countries. Aid may improve institutions, e.g. when conditionality succeeds, but it can also have unintended effects that are typically negative, e.g….

In this review, we examine the links between economic development and social conflict. By economic development, we refer broadly to aggregate changes in per-capita income and wealth, or in the distribution of that wealth. By social conflict, we refer to…

Gender relations are a key institution governing important aspects of production and reproduction of societies. They are guided by formal institutions as well as informal norms and values. As this survey shows, there is great regional heterogeneity in gender inequality…

I ask what clues do historical and contemporary data provide for theory building and empirical work to enhance our understanding of the relationship between institutions and inequality. The survey begins with a brief overview of the role of institutions in…

Group inequality is a prominent feature of many modern democracies. The purpose of this paper is to take stock of what we know about the ways in which major democracies have viewed social groups and addressed inequalities between them. Countries…

This paper reviews the channels through which the media can be a tool of institutional development, building the argument in two parts. First I focus on the media as a tool for accountability: by providing information on candidates ex ante,…

We present accepted basic arguments on the role of institutions in development and then discuss the corresponding empirical evidence in support (or not) of those arguments. Methodologically, our emphasis is on experimental evidence wherever available, and thematically we focus on…

Louis Kasekende (Deputy Governor, Bank of Uganda) discusses the role of formal and informal institutions in the financial sector. He refers to recent EDI path-finding research papers to focus on the transition from informal to formal institutions and its effect…

Joan Esteban (Institute for Economic Analysis) and Debraj Ray (New York University) explain how civil wars are the major impediments to growth, and offer three lessons from existing research. Watch our Spotlight on Conflict and Development below: