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30 Years of economics for development

WP/75 Misuse of Institutions: Lessons from Transition

The paper explores a phenomenon often observed in transition economies, when newly established institutions are misused, i.e., applied or resorted to for reasons which have little in common with their intended or anticipated purpose. In such incidences institutions become sources of private gains and lose their value-creation role and capacity. We offer a typology of institutional misuse (illustrated by examples from Russian transition), discuss its consequences, and explore reasons why governments and societies fail to serve as institutions' guardians. Implications misused institutions for economic and political reforms are analysed.
Publisher:
UNU-WIDER
Series:
WIDER Working Paper
Volume:
2010/75
Title:
WP/75 Misuse of Institutions: Lessons from Transition
Authors:
Leonid Polishchuk
Publication date:
June 2010
ISBN 13 Web:
978-92-9230-313-6
Copyright holder:
© UNU-WIDER
Copyright year:
2010
Keywords:
institutions, transition, capture, club goods
JEL:
D02, D72, D78
Project:
Reflections on Transition: Twenty Years After the Fall of the Berlin Wall
Sponsor:
UNU-WIDER acknowledges the financial contribution to the conference by the Finnish Ministry for Foreign Affairs and the continued support to the research programme by the governments of Denmark (Royal Ministry of Foreign Affairs), Finland (Ministry for Foreign Affairs), Sweden (Swedish International Development Cooperation Agency—Sida) and the United Kingdom (Department for International Development).
Format:
online and printed copies