NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, April 21, 2005

First, there are many paths to development. The key is creating an institutional structure derived from your particular cultural institutions that provide the proper incentives — not slavishly imitating Western institutions. Second, the world is constantly changing in fundamental ways. The basics of economic theory are essential elements of every economy, but the problems countries face today are set in new and novel frameworks of beliefs, institutions, technologies, and radically lower information costs than ever before. The secret of success is the creation of adaptively efficient institutions — institutions that readily adapt to changing circumstances.
Commentary found here.