Misuse of Institutions: Patterns and Causes
AbstractInstitutions are often misused, i.e. applied or resorted to for reasons which have little in common with their intended raison d'etre. This paper provides an insight into the origins and causes of institutional misuse and explores the political economy of this phenomenon. We present a typology of misuse of institutions and illustrate it by examples largely drawn from Russian realities. Causes of vulnerability of institution to misuse are discussed. It is argued that institutions are not protected from misuse at the grassroots due to unresolved collective action problem, whereas economic and political elite are either indifferent to misuse of institutions, or perpetrate such misuse by subverting market institutions for the purpose of rent extraction.
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Bibliographic InfoArticle provided by The Japanese Society for Comparative Economic Studies (JSCES) in its journal The Journal of Comparative Economic Studies.
Volume (Year): 4 (2008)
Issue (Month): (December)
institutions; political economy; legal reform; institutional capture;
Find related papers by JEL classification:
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
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