INSTITUTIONS and DEVELOPMENT WHAT’S THE LINK?

MANY DISCIPLINES HAVE INTERESTS + CONVERGE GEOGRAPHY HISTORY ECONOMICS POLITICAL SCIENCE MILITARY STUDIES MAYBE EVEN ECOLOGY

INSTITUTIONS? RULES OF THE ‘GAME’ ‘GAME’ THEORY’ NOT TRIVIAL GAME SHAPE HOW WE BEHAVE PERVASIVE ‘SOCIAL FACTS’ NOT ORGANIZATIONS! THE PLAYERS

WHAT MAKES A ‘GOOD’ GAME? SPORTING ANALOGY Garden cricket; agreed rules LOALLY APPROPRIATE LOCALLY LEGITIMATE GOOD TEAMS, GOOD UMPIRES ALL DEPEND ON INSTITUTIONS APPLY THAT TO EVERYTHING WE DO – IMPORTANT WAY OF THINKING

FORMS OF INSTITUTIONS ECONOMIC INSTITUTIONS (RULES) Property rights or not? Markets AND Silent barter Regulations – H+S etc - ENVIRONMENTAL POLITICAL INSTITUTIONS Constitutions, conventions, laws, school rules SOCIAL INSTITUTIONS Marriage, gender relations, queuing, cultural rules TOGETHER THEY MAKE UP A ‘SOCIAL ORDER’ TOGETHER THEY DETERMINE DEVELOPMENT

FORMAL AND INFORMAL INSTITUTIONS PARCHMENT INFORMAL CONVENTIONS, CUSTOMS SOMETIMES CLASH BARBADOS FLIGHTS BANGALDESH BUSSES

WHY CIVIL WAR? SLOW ECONOMIC GROWTH DEPENDENCE ON VALUED COMMODITIES POVERTY AND LITTLE CHANCE OF ESCAPE FIGHT FOR EVERY CRUMB DEPENDENCE ON VALUED COMMODITIES OIL, DIAMONDS = Angola, Sierra Leone, Nigeria WEAK STATE – Often associated with poor countries NO AGREED INSTITUTIONS/RULES PEACE USUALLY THROUGH NEW RULES

STABLE OR UNSTABLE? WAR, VIOLENCE – no agreed rules RULE-BASED – basis for peace Not easy when history of inequality Not easy when deep divisions South Africa, Iraq, Afghanistan

CIVIL WAR AND PER CAPITA GDP PROBABILITY OF CONFLICT DECLINES AS GDP PER CAPITA GOES UP BETWEEN 1960 AND 2000 - BELOW $1000, THERE WAS A 16% CHANCE OF CIVIL WAR ABOVE $5000, THERE IS A LESS THAN 1% CHANCE OF CIVIL WAR 73% OF PEOPLE IN POOREST SOCIETIES HAVE BEEN IN OR ARE IN CIVIL WAR MAINLY AFRICA, BUT NOT ONLY

SUSTAINABLE DEVELOPMENT ? USUALLY IN CONTEXT OF ‘THIRD WORLD’: STRUCTURAL CHANGE? AGRICULTURE TO INDUSTRY? ECONOMIC GROWTH? INCREASE IN GNP? FREEDOM OF CHOICE? LIFE CHOICES? EQUALITY? OF GENDER ESPECIALLY ENVIRONMENTALLY FRIENDLY ALL REQUIRE ‘INSTITUTIONS’ - RULES

DEVELOPMENT – HOW? CAPITAL INVESTMENT HUMAN CAPITAL – Skills but stay Who will save? Who will invest in insecurity? War? HUMAN CAPITAL – Skills but stay TECHNOLOGY – How to maintain it? INSTITUTIONS – RULES are preconditions for all PROPERTY CONTRACTS AND ENFORCEMENT COOPERATION TRUST

THERE’S THE LINK INSTITUTIONS AND DEVELOPMENT THEORY IS – ESTABLISH INSTITUTIONS, REDUCE INSECURITY, ENABLE DEVELOPMENT TO HAPPEN

WESTERN INTEREST? WHY IS THE WEST CONCERED? HUMANITARIAN REASONS SECURITY REASONS – FAILED STATES AND TERROR GROUPS SOMALIA NOT ONLY THOSE - Libya ECONOMIC REASONS – RESOURCES, TRADE, POLICING

WHAT IS TO BE DONE? BUILDING EFFECTIVE INSTITUTIONS POLITICAL AND ECONOMIC SUPPORT LOCAL PROCESSES ALSO GOVERNMENTS, BUREAUCRACIES AND ARMIES – VERY HARD, TAKES LONG MARKETS AND TRUST NO INSTITUTIONS, NO DEVELOPMENT. FORMAL OR INFORMAL