The purpose of your second policy memo assignment is to consider the economic
and political path whereby a set of “bad” institutions can be effectively converted
into a set of “good” institutions. In Part I of your memo, please describe the various
laws, policies and institutions of “good” regimes. What are the characteristic
features of these regimes, and why are they conducive to growth, prosperity and
democracy? In Part II, please describe why the absence of these “good” institutions
is so destructive of economic prosperity, individual well-being and political stability.
Finally, in Part III, please describe how an extractive regime be converted into an
inclusive one: What are the main impediments, both internal and external, for
effective economic and political reform? What are the necessary preconditions,
both internal and external, for effective economic and political reform?
Based on research by economist Darren Acemoglu the purpose is consider the economic and political path whereby a set of “bad” institutions can be effectively converted into a set of “good” institutions.
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