EC425 Economic Development & Institutions
The course examines how formal (political-legal) and informal (cultural) institutions impact long-term economic development and growth. Institutions appear in context of general theories of economic development on why some nations prosper and other nations lag behind. The role of institutions shaping incentives and innovations are developed in theory and applied and tested in realistic or concrete cases—global, domestic, and even local. Topics are considered economically, politically, geographically, and historically. European and United States’ paths to development are contrasted with the relative failures and stagnation of 20th century Russian and Chinese models, plus the reversals of fortune experienced by Latin American countries. The course takes up further the roles of 20th century organizations such as the World Bank, International Monetary Fund, United Nations, regional development banks, currency unions, trade unions, and development initiatives including foreign "aid."