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  • 1 - Theoretical Underpinnings

  • from Part I - Approaching Institutional Change: Theory and Methodology
  • François Bourguignon, École d'économie de Paris and École des Hautes Études en Sciences Sociales, Paris, Jean-Philippe Platteau, Université de Namur, Belgium
  • Book:
    Institutional Challenges at the Early Stages of Development
    Published online:
    09 November 2023
    Print publication:
    09 November 2023, pp 13-48
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  • Summary

    Chapter 1 is a short survey of the institution and institutional change literature in connection with development. Four themes of interest for the rest of the volume are considered in turn. First comes an important clarification about what is meant by ‘institution’ in the development literature and how it is to be interpreted in the rest of the volume. Second, the chapter deals with the question of the relationship between formal and informal or transitional institutions, a question of first importance in developing countries, especially when the two types of institutions enter in conflict. Third, the dynamics of institutions is discussed, the distinction being made between institutions that evolve endogenously or alternatively persist in spite of a changing environment or being clearly suboptimal. Finally the chapter briefly examines the main arguments in the debate about radical versus gradual institutional reforms.