Relationship Between Social Institutions And Economic Growth By Comparing Countries From East Asia And Latin America

Institutions are the long lasting patterns of organizations within a community. An example would be government, this is necessary to maintain and control large populations of people. The first government was a monarchy. Another institution is Religion, almost all early religions but one were basically polytheistic. Next would be the Economy, this institution is based around trade. And lastly, Education, this is trained and specialized workers to replace those who died off. Another complex institution is the Temples. These served at first as the centers of government and trade as well as religion. In the beginning religious leaders ruled the cities.

Institutions are the result of past historical and social developments. Since different countries have different pasts, institutions will vary.

Although these examples are drawn from very different institutional environments, there is a common thread. In both kinds of contexts, the formal constraints have established the parameters of legitimate action, providing the institutional mold within which emergent norms and networks

According to it, constitutions and law are the core substance of politics and government and the proper object of political analysis. The government is said to be sorely constituted by a set of rules, and rules governed by overarching constitutions, which are written and unwritten. Institutionalism also holds that institutions are the principal objects of study in the discipline and hat they determine much of what happens in the broader political system ( Lees-Marshment, Giasson and Marland

Institutions (collective means of dealing with basic social functions in government, family, mass media, and economy)

After the end of the World War II the world faced the challenges of economic and social recovery. The majority of developing countries based their economies on Import Substitution Industrialization (ISI), the state-oriented approach to a trade and economic policy. ISI supports the replacement of import with domestic production in order to reduce foreign dependency. This protectionist policy dominated in developing countries, especially in Latin America and sub-Saharan Africa, during the first 30 years after the World War II. By 1980s, when the main gains of ISI were exhausted and it demonstrated its inefficiency, the countries of East Asia adopted a new development strategy. Consequently, this new export-oriented and market-friendly strategy, so-called East Asian model, has determined the successful economic and trade policy of East Asian countries during the next several decades. To understand the reasons of the shift from ISI to the East Asian model, it is needed to carefully examine and contrast these two approaches and their supporting theories.

They are considered real social institutions that constitute the cement of society, allowing communication among its members and change with social change.

Institutions play a huge role in society. Whether one realizes it or not, everything our society is and does is because of the institutions that are set up. In “Animal Farm” by George Orwell, Napoleon, the dictatorial ambassador of Animal Farm, uses his different forms of manipulation to introduce different types of institutions. A few of the institutions he set up are: the ideology of Animalism, family, the judicial system (dogs/pigs) etc… However, the institutions I will talk about are: the community, media and propaganda, labor, and education.

Institutions are in place in our society to aid in controlling people to a certain extent in order to keep a peaceful, orderly and organized system. In our lives we have our families controlling our lives to certain extents in order for us to be safe and be educated about our culture. Educational institutions play another important role by informing us about the world and its current situation as well as preparing us for our future professions. Religious institutions are one more social institution that factor in to our lives and how the society moves ahead as it can cause people to be for or against ideas. It implants an ideology into the human brain which can direct responses to different situations as well. Economic institutions command how much wealth we possess. Political institution are probably the biggest authority in our lives. They control every other social institution that I have mentioned above due to their power. Cathy Davidson mentions in her article about the political institutions creating hierarchy and how her idea of collective collaboration would facilitate in making education break free from the hierarchy system. Steven Johnson would agree with Davidson’s idea of moving away from political institutions in order to achieve his own goals of having a self- organized system. Johnson states, “All you need are thousands of individuals and a few simple rules of interaction.” (Miller, 199) Even Johnson thinks that we should have some rules in order to maintain a

Amartya Sen defines economic development in terms of personal freedom, freedom to choose from a range of options. While economic growth may lead to an increase in the purchasing power of people, if the country has a repressed economy, there is lack of choice and hence personal freedom in restricted. Hence once again growth has taken place without any development. While economic growth may result in an improvement in the standard of living of a relatively small proportion of the population whilst the majority of the population remains poor. It is how the economic growth is distributed amongst the population that determines the level of development.

This essay intends to address the argument that Less Developed Countries (LDCs) cannot achieve the level of development of the Developed Countries (DCs) unless they undergo a process of industrialisation. In proposing a case in favour of this argument the industrialisation experiences of the Latin American and Asian regions will be investigated, with specific regard to the role of state intervention throughout this process. Conclusions will be drawn from these cases, specifically that through the process of industrialisation LDCs can achieve the levels of development of the DCs and this inference will be supported through the analysis of Human Development Index (HDI) rankings and scores for 2010.

In the Acemeglu, Johnson and Robinson article, “Institutions as a Fundamental Cause of Long Term Growth”, the authors emphasize how institutions are the main determinant of economic development because stronger institutions allow for more growth in education, security, and health. To observe whether strong institutions determine economic growth it is important to mention the characteristics of a strong institution that allows for fast growth. Strong institutions are able to enforce property rights, a fair judiciary, efficient bureaucracies, intellectual property rights, corporation government bankruptcy laws, and democracy (e.g. “(Lecture 13)”). Going in depth

He pointed out that different economic levels have their own requirements and they may not follow the same process of industrialization. Moreover, he raised the most influential theory related to late industrialization that the economically backward states may have rapider growth rate as they are late comers, and the national development process relied on the degree of economic backwardness. That is to say the more backward a country, the faster it will advance (ibid).

It is fair to say that the ones who benefit the most in economic globalization are developed countries whose social productive forces are highly developed ((El-Ojeili, C. & Hayden, P., 2006.). However, it is difficult for developing countries that are relatively

Social institutions are a system of behavioral and relationship patterns that are densely interwoven and enduring, and function across an entire company. They regulate and structure the behavior of individuals by way of their normative role. Institutions regulate the behavior of