|
Creato da historicans il 27/11/2009
historicans
|
Area personale
Tag
Cerca in questo Blog
Menu
Ultime visite al Blog
Ultimi commenti
Chi puņ scrivere sul blog
| « Mqoiwk | Boguih » |
Sdlkoz
By TRINA LAGURA
Nobel laureate Douglass North on Saturday stressed that institutions, which provide a framework on how people behave, play a major role in economic development.
North, who won the 1993 Nobel Memorial Prize in Economic Sciences, spoke at the seventh UP Centennial Lecture Series at the UP School of Economics in Diliman, Quezon City.
The American professor has spent more than 50 years studying why some countries become rich while others remain poor, particularly the long-term development of Europe and the United States.
North said he and his co-workers found that institutions that enable markets, or those that reduce transaction costs and protect property rights, boost economic growth.
He also pointed out that "getting stability and order is a necessary pre-condition to obtain economic growth."
He lamented this was not the case in Iraq, where "chaos and disorder" have pervaded in the Middle East country since the US-led war began.
Limited access
North said their study also revealed that most societies, even in the contemporary world, are organized in what they call limited access social order.
Limited access order uses political systems to limit economic entry, thus creating rents and income. They then use these to stabilize the political system and limit violence, according to their study titled "A Conceptual Framework for Interpreting Recorded Human History."
North explained that institutions under LAOs are dependent on elite groups.
Open access
On the other hand, only a handful of developed countries operate under the open access social orders , wherein which "everybody participates, everybody is equal."
"Social order is sustained by competition rather than rent-creation. The key to understanding modern social development is understanding the transition from limited to open access social orders, which only a handful of countries have managed since ," the study said.
North cited "door-step conditions" for a country to achieve OAO status.
One of these conditions, he said, is for the military to remain subservient to the civilian rule.
He, however, warned of chaos if the prevailing conditions under OAO are imposed on LAO.
 Condividi e segnala -
permalink
- Segnala abuso |
Inviato da: hengel0
il 01/12/2009 alle 20:16