Grand Pattern of Development and the Transition of Institutions

This book explores the relationship between economic development, income, and institutions, demonstrating that income leads to institutional evolution. Countries become secular democracies with low corruption and a mixed economic system as they become wealthy.

Format: Hardback
Length: 286 pages
Publication date: 19 August 2021
Publisher: Cambridge University Press

This comprehensive book, the result of a long-lasting and remarkable research program, delves into the intricate relationship between economic development and income on one hand, and the evolution of institutions on the other. It explores the profound transition of countries from one economic and social system to another. The author takes a deep dive into the transitions of two distinct types of institutions. The first category encompasses external legal-administrative systems with dedicated staff and physical structures. Within this realm, the author examines the interplay between the political system and the economic system, highlighting their interconnected dynamics. The second category consists of traditions and beliefs, where corruption and religiosity take center stage. Contrary to the prevailing notion that institutions are the primary drivers of development, this book compellingly argues that the primary direction of causality runs from income to institutions. As countries experience economic prosperity, they tend to evolve into secular democracies characterized by low levels of corruption and a mixed economic system. In the final chapter, Paldam showcases a remarkable insight, demonstrating that the evolution of institutions does not precede but rather follows the path of economic growth. This insightful coda underscores the complex interplay between these two critical factors and sheds light on the intricate dynamics that shape the trajectory of nations.

Weight: 518g
Dimension: 158 x 236 x 24 (mm)
ISBN-13: 9781316515501