Is it possible to design institutions?

Some would hold that “endogeneity and spontaneous order imply conservatism – that is, preservation of the status quo. Bluntly put, no matter whether informal, customary land rights or child labor is involved, endogeneity allegedly assumes an autonomous evolution in which any development intervention is futile. That is not the message (…), nor is it the case. As aptly worded by Aligica and Boettke (2009, 25): ‘Design and spontaneous order are not irreconcilable’.” See P. Ho, “An Endogenous Theory of Property Rights”, Journal of Peasant Studies, 2016, 43/6, p. 1138-9.

[ap_toggle title=”READ MORE” status=”close”]“Driven by the use and disuse of their function, institutions spontaneously arise, persist and vanish, much like ocean currents arise, persist and vanish. However, in sailing the currents of development, good seamanship is indispensable, which entails knowing which waters are easy to negotiate, and which waters are not. That knowledge signifies comprehension or, minimally, the recognition of the array and scales of development interventions that can be used, in relation to the endogenous conditions under which they may produce an effect or are likely to fail. In this context, [we put] forward a possible ‘checklist’ for a ‘no-go’ that links levels of credibility to possible intervention and non-intervention. It is hoped that this ‘Credibility Scales and Intervention’ (CSI) checklist can assist policymakers in becoming aware of, and better reviewing, their opportunities and constraints.” See P. Ho, “An Endogenous Theory of Property Rights”, Journal of Peasant Studies, 2016, 43/6, p. 1139.

This question is related to:

  • How is credibility related to intentionality (or agency)?

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