scholarly journals The impact of Covid-19 pandemic on the institutional change in developing countries

2021 ◽  
Vol 20 (3) ◽  
pp. 587-601
Author(s):  
Tomasz Legiędź
Keyword(s):  
Developing Countries ◽  
Institutional Change ◽  
Institutional Economics ◽  
Influenza Pandemic ◽  
Civil Liberties ◽  
New Institutional Economics ◽  
Institutional Changes ◽  
Current Events ◽  
Institutional System ◽  
The Impact

Motivation: The Covid-19 pandemic is having a critical impact on economies, especially in developing countries. Such a serious external shock affects the distribution of economic rents, thus leading to potentially large institutional changes. Naturally, in the short term we are dealing with an economic crisis and a restriction of civil liberties in both autocratic and democratic countries, however, it is not known what the dynamics of institutional changes will be in the longer run. Aim: The main purpose of the article is to answer if the Covid-19 pandemic becomes a turning point that will determine the institutional system in developing countries for the next few decades. The first part of the article outlines the theory of institutional change, with particular emphasis on the role of external shocks. The next section presents studies on the socioeconomic impact of two major epidemics: The Black Death and the Great Influenza Pandemic. The third part conducts an assessment as to what extent the current pandemic may affect institutions in developing countries, by reference to the example of two countries: Tunisia and Cambodia. The analysis is conducted from the perspective of the new institutional economics. Results: If we look at the experiences from previous pandemics, current events and refer to the literature on the theory of institutional change, we can conclude that significant institutional changes caused by Covid-19 are unlikely. The process of institutional change is characterized by a specific complexity and changing dynamics. Nonetheless, it is the internal factors, reflecting the actions of people trying to maximize the benefits, which are the main cause of change in an institutional system. Therefore, the Covid-19 pandemic is more likely to strengthen the endogeneity of the process of institutional change, rather than change its course.

scholarly journals Hemmnisse institutionellen Wandels im Kleinprivatwald aus der Sicht der Neuen Institutionenökonomik | Constraints on institutional change in smallscale forestry: a New Institutional Economics perspective

2006 ◽  
Vol 157 (3-4) ◽  
pp. 84-90 ◽  
Author(s):  
Achim Schlüter
Keyword(s):  
Forest Management ◽  
Institutional Change ◽  
Institutional Economics ◽  
Theoretical Perspective ◽  
Explanatory Power ◽  
New Institutional Economics ◽  
Institutional Changes ◽  
Wood Production ◽  
Private Forests ◽  
Production Chain

This contribution looks at the problems of bringing small, private forests into the wood production chain from an institutional theoretical perspective. This would conclude that institutional changes are inevitable. In practice, however, structures in small private forests are characterised by considerable inertia. Various approaches in New Institutional Economics are investigated to determine whether they can provide an explanation for this inertia. Explanatory power can only be developed by employing a combination of different approaches. The current extension of this theory into ideological and trading resources is equally necessary to understand the institutional change in forest management.

Development, Informal Institutions and Agency Analyzed through the Lens of New Institutional Anthropology: A Modification of Ensminger’s Framework on Institutional Change

2017 ◽  
Vol 137 (1-2) ◽  
pp. 69-91
Author(s):  
Johanna Friederike Goetter
Keyword(s):  
Institutional Change ◽  
Political Institutions ◽  
Institutional Economics ◽  
Informal Institutions ◽  
New Institutional Economics ◽  
Wide Range ◽  
The Status ◽  
Specific Outcome ◽  
History Of ◽  
The Impact

In development research, much effort has gone into analyzing the impact of economic and political institutions and their adequate design. However, unforeseen factors such as the impact of the cumulative behavior of individuals as shaped by informal institutions – especially social norms and moral values – may also determine the pace and path of development. Thus, positive economic, social or political triggers may only then translate into development if the relevant actors adapt their strategies and actions appropriately. Similarly, while negative triggers may induce a deterioration of the socioeconomic situation if no adaptation or a mal-adaptation takes place, in another real-world setting with a different set of institutions and actors it may in turn be possible to preserve the status quo. Sound analytical frameworks are needed to gain a deeper understanding of the complex and dynamic interaction of factors leading to a case-specific outcome and history of change. These frameworks have to be specific enough to allow the interpretation of complex changes and dynamics and at the same time general enough to fully cover a broad range of diverse settings and all important but possibly unforeseen aspects. In this paper, I present a modified version of the Framework for Modeling Institutional Change developed by Jean Ensminger (1992). Accounting for the relationships and dynamics of incentives, formal and informal institutions, bargaining power and the constellation of actors, Ensminger’s framework, which is rooted in the theoretical approach of New Institutional Anthropology, merges important aspects from New Institutional Economics and anthropology. However, it fails to leave room for agency which, as the paper illustrates, has been shown to play an often important role in development. The modified version of Ensminger’s framework incorporates agency as a main factor. For the purpose of demonstration, it is applied to a case study on informal constraints to cope with cattle rustling in Madagascar. The paper illustrates the modified framework’s analytical strength for a meticulous investigation of a wide range of empirical cases and discusses to which development-related cases and research interests it fits best. JEL Codes: B52, O1, N57, Z13

Water institutional reforms in Chile

Water Policy ◽  
2005 ◽  
Vol 7 (1) ◽  
pp. 53-69 ◽  
Author(s):  
Robert R. Hearnea ◽  
Guillermo Donosob
Keyword(s):  
Water Management ◽  
Institutional Change ◽  
Institutional Economics ◽  
Group Behavior ◽  
Path Dependency ◽  
Reform Process ◽  
Institutional Changes ◽  
Legislative Process ◽  
Water Sector ◽  
Management Institutions

This paper provides a review of the recent institutional changes observed in the water sector in Chile. This review is then used to reflect the Chilean experience in the light of the results concerning institutional change found in existing literature on both institutional economics in general and water institutional economics in particular. These results relate to factors explaining institutional change and the role of endogenous institutional features, such as path dependency and institutional linkages during the reform process. Against a brief description of the main features of the water sector in Chile, the paper provides an overview of Chilean water management institutions and the reforms process ongoing since the 1980s. The factors that motivated institutional changes in Chile's water management include ideology, transactions costs, interest-group behavior and path dependency. While the already observed institutional changes, such as the transferable water rights, water markets and urban water reforms, are all significant, further reforms are delayed by the deliberate legislative process required for changes as a result of the 1980 Constitution. Future water reforms in Chile, therefore, depend on a very difficult process of political reforms needed to change the 1980 Constitution and the 1981 Water Code.

scholarly journals The impact of regulation governance on financial system efficiency: The importance of consumer behavior

2021 ◽  
Vol 11 (1) ◽  
pp. 80-93
Author(s):  
Alessandra von Borowski Dodl
Keyword(s):  
Financial Services ◽  
Institutional Economics ◽  
Financial System ◽  
New Institutional Economics ◽  
System Efficiency ◽  
Life Plans ◽  
Governance Effectiveness ◽  
Instrumental Values ◽  
The Impact ◽  
Theoretical Apparatus

This study focuses on the value structure that correlates improvements in the financial services consumer’s decision-making quality with the development of their autonomy. The discussion is based on the concepts of ceremonial and instrumental values, according to Bush (1987). We anchor our analysis on the premise that there is still room for enhancing the results within the National Financial System – NFS – by broadening the scope of initiatives on financial services consumers’ education and protection (von Borowski Dodl, 2020). Strengthening this perspective, we emphasize the consumer’s role as an agent and the relevance of taking decisions according to their life plans. The analysis is undertaken through the institutional literature lens, considering both schools of thought: Original Institutional Economics (OIE) (drawing on Tauheed, 2013a, 2013b) and New Institutional Economics (NIE) (focusing on North, 1990). From the conjunction of the theoretical apparatus and the applied analysis, we propose a governance policy within the NFS aimed at increasing its efficiency. Effective communication between stakeholders and consumers’ participation in the structuring of institutions – by publicly evincing their political power – hold the potential for promoting governance effectiveness. Additionally, although the approach taken focuses on the NFS, the diagnosis process carried out in this study can be easily reproduced in other contexts.

Re-Thinking the Role of Institutions in Neoliberalism From New Institutional Economics Perspective

2020 ◽  
pp. 25-40
Author(s):  
Ilke Civelekoglu ◽  
Basak Ozoral
Keyword(s):  
Economic Growth ◽  
Political Economy ◽  
Developing Countries ◽  
Property Rights ◽  
Institutional Economics ◽  
New Institutional Economics ◽  
The Political ◽  
Formal Institutions ◽  
Fertile Ground

In an attempt to discuss neoliberalism with a reference to new institutional economics, this chapter problematizes the role of formal institutions in the neoliberal age by focusing on a specific type of formal institution, namely property rights in developing countries. New institutional economics (NIE) argues that secure property rights are important as they guarantee investments and thus, promote economic growth. This chapter discusses why the protection of property rights is weak and ineffective in certain developing countries despite their endorsement of neoliberalism by shedding light on the link between the institutional structure of the state and neoliberalism in the developing world. With the political economy perspective, the chapter aims to build a bridge between NIE and political economy, and thereby providing fertile ground for the advancement of NIE.

Historical analysis of institutions and organizations: the case of the Brazilian electricity sector

2014 ◽  
Vol 11 (1) ◽  
pp. 191-212 ◽  
Author(s):  
GUILHERME SIGNORINI ◽  
R. BRENT ROSS ◽  
H. CHRISTOPHER PETERSON
Keyword(s):  
Institutional Change ◽  
Institutional Economics ◽  
Debt Crisis ◽  
Historical Analysis ◽  
Economic Recession ◽  
New Institutional Economics ◽  
The Body ◽  
Electricity Sector ◽  
Causal Explanations ◽  
Market Protection

AbstractScholars argue that the New Institutional Economics (NIE) has not yet provided causal explanations on how long institutions persist or why and how they suffer dramatic changes. Others state that evidence is still inconclusive to define a theoretical justification on how changes and development occur. This article focuses on the institutions of the electricity sector in Brazil, aiming to heighten the body of empirical research in NIE and produce satisfactory explanations that motivate theory refinement. Based on a qualitative approach, we find that the drivers of the first institutional change in Brazil's electricity sector were related to market protection and domestic industrial support. For the second institutional change, economic recession (country at state of bankruptcy, debt crisis, and high inflation rates) and reliability of utility services were the driving factors. We hope this study systematizes historical facts and helps create grounds for our understanding of institutional evolution and economic growth.

A Study on Institutional, Market and Natural Environment Impact on Agrarian Sustainability in Bulgaria

2018 ◽  
Vol 9 (3) ◽  
pp. 452 ◽  
Author(s):  
Hrabrin BACHEV ◽  
Dimitar TERZIEV
Keyword(s):  
Natural Environment ◽  
Institutional Economics ◽  
Institutional Environment ◽  
Critical Factor ◽  
New Institutional Economics ◽  
Environment Impact ◽  
Specific System ◽  
Specific Effects ◽  
Geographical Regions ◽  
The Impact

The specific system of governance is a critical factor, which to a great extent (pre)determines the type and speed of development in different countries, industries, regions, communities, etc. This article tries to fill the gap and assesses the impact of institutional environment on agrarian sustainability in Bulgaria. The interdisciplinary New Institutional Economics framework is applied and assessment made on specific effects of major components of the “external” institutional environment on agrarian sustainability level in different administrative, geographical and ecological regions, subsectors of agriculture, and farms of various juridical type and size. Our study has found out that individual elements of external institutional, market and natural environment affect quite unequally farms of different types, individual subsectors of agriculture, and specific ecological and geographical regions. This type of studies is to be expended and their precision and representation increased. The latter however, requires a close cooperation between all interested parties, and participation of the farmers, agrarian organizations, local and central authorities, interest groups, research institutes and experts, etc.

scholarly journals Institutional Economy Development Problems

2021 ◽  
pp. 40-48
Author(s):  
Bagrat H. Yerznkyan
Keyword(s):  
Institutional Economics ◽  
Systemic Approach ◽  
Institutional Changes ◽  
Economic Agents ◽  
The Future ◽  
Institutional System

The development of institutionalism was not limited to the transition from the old theory to the new one: time is changing, the behavior of economic agents – ​carriers, voluntary or involuntary, of the institutions, whether formal or informal, is changing, – ​institutions that, in turn, are themselves the object of changes. This nature of the object under study poses a difficult task for researchers: to identify, with the help of changing (developing, adapting) tools, the essence of the modern institutions and the ones that can take place in the future, which is in a state of permanent development (evolution). The article describes the system logic of institutions, the reasons for institutional changes, especially caused by the current pandemic, highlights the problems and prospects for the development of the institutional economics from an ecosystem perspective. The latter circumstance presupposes going beyond the purely systemic approach to the study of the institutional system by including the features of the interaction of the system under study with the relevant metasystem, which forms a functional unity with the system and, therefore, is interpreted in aggregate as an ecosystem.

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