Development and Institutions

The objective of this course is to question the role of "institutions" in the development of countries. Starting from the observations that differences between countries cannot be explained only by geographical or endowment differences, we will then see how history matters, and that institutional arrangements can have long lasting impact. However, "institution" is a polysemic term, and can cover a wide variety of topics: we will study "institutional structures" as well as "institutional arrangement", and distinguish between "formal" and "informal" institutions. Taking the example of colonization both at the macro and micro level, we will show that the institutional structure has central role in the level of development of countries. Turning to informal institutions, we will then see what role they play, and how they interact with the development process. More specifically, we will turn to the other side of the relationship between development and institutions, showing how institutions are in turn affected by development. Finally, we will study an aspect of institutional arrangements that has been considered central to development: property rights and the various arrangements over land ownership and their role in development.