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Appraising institutional challenges in the early stages of development

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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
presence of clear failures in particular institutional areas. In other words, not all dimensions
of governance may be relevant at a given point in time in a given country. Likewise,
institutional dimensions that are not included in governance criteria may play a critical role.
Despite intensive and increasing efforts over the last few decades, there remains limited
knowledge about how institutions affect development, how those institutions are formed, and
how they could be reformed in specific contexts.

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