In the article Institutionsand economic development: theory, policy and history, the author discusses the understandof institutional economics because he examines the current dominant discourse oninstitutions and economic development.
One on the main points that the authormade was the pressure for the adoption of GSI by poor and wealthy countriesalso known as developing countries. Theauthor discusses the problems with better discourse on institutions and economicdevelopment. There are two problems first one is that it almost solely assumesthat fate runs from institution to economic development when ignoring thepossibility that economic development changes institutions. Second problems arethe economics focuses on the relationship is theorized in a rather simplisticway. One of the questions that caught myattention was “Do institutions that provide greater economic freedomlead to faster growth?” the answer was not simple to define after reading itseveral times, but form my understanding is different people with differentvalues will see different degree of freedom in the same market.
Everybody has differentvision in the degree same market. Different perspective and different viewpoints.The author also brings neoclassicals economist are in the market and how their ideaseffects the if there is a greater economic freedom lead to faster growth. The otheralso mentions other two more points.
The author questioned if the relationshipbetween institutions and economic development always the same? Well, according to the author, when if aninstitution promotes growth, it may actually hamper economic growth in biggerdose. Second, even of the same countrydoes good to one country they do bad for the other. This means that there needs to be the same levelof protection of IPRs that can beneficial for countries.
This is another reasonfor developing and developed countries. TheIPR in developed and developing countries is by far very different.