Democracy/Governance / 19.01.2008

Reader Ali Sohail has pointed us to a paper (Second-Best Institutions) by Dani Rodrik of Harvard University that asks why "best practices" are an unhelpful way to think about institutional reform. The paper is about economic institutions but it complements very nicely the theme we explored in the last post regarding governance and pure democracy in developing countries—that the best can be the enemy of the good and that the best is often dangerously innocent of contextual realities. Here are some relevant excerpts from Dani Rodrik’s paper: The focus of reforms in the developing world has moved from getting prices right to getting institutions right… “Governance reforms” have become the buzzword for bilateral donors and multilateral institutions, in much the same way that liberalization, privatization and stabilization were the mantras of the 1980s.  But what kind of institutions should reformers strive to build?  Developing nations are different from advanced countries in...