This essay will look at the evidence for and against the afore mentioned statement, that institutions are the fundamental determinant in economic developement. To answer the question i will
begin by looking at the case of North korea and south Korea, two countries that were once very similar in terms of development but now have very different economies. Also the essay will look
at the effect that european colonialisation had on the institutions that formed in respective colonised countries, with specific focus on North american Colonisation comparative to African
colonisation and institutions that formed.
Institutions are the rules of the game in a society or, more formally are the humbly devised constraints that shape human interaction …show more content…
There are no other instances of the same practise leading to the same results across the rest of the world.
Another explanation for development would be the great divergence. It is unknown when the source of the great divergence is, some believe that it occurred in the 18th century durig the
industrial revolution others think that it occurred much earlier during the colonisation of the world by Europe. By looking at graphs we can see that slight differences began in the late 15th
century with western Europe averaging a higher GDP per capita then other continents. Thus providing weight for the notion that the divergence began in the 15th century. Also at this time
western European countries had begun to colonise the rest of the world, with the likes of Christopher Columbus settling in north america. This gave rise to a new set of ruling institutions in
these countries. However, the institutions varied country by country, in north america the institutions set up were financial based compared to the plantation institutions of the caribiean.
begin by looking at the case of North korea and south Korea, two countries that were once very similar in terms of development but now have very different economies. Also the essay will look
at the effect that european colonialisation had on the institutions that formed in respective colonised countries, with specific focus on North american Colonisation comparative to African
colonisation and institutions that formed.
Institutions are the rules of the game in a society or, more formally are the humbly devised constraints that shape human interaction …show more content…
There are no other instances of the same practise leading to the same results across the rest of the world.
Another explanation for development would be the great divergence. It is unknown when the source of the great divergence is, some believe that it occurred in the 18th century durig the
industrial revolution others think that it occurred much earlier during the colonisation of the world by Europe. By looking at graphs we can see that slight differences began in the late 15th
century with western Europe averaging a higher GDP per capita then other continents. Thus providing weight for the notion that the divergence began in the 15th century. Also at this time
western European countries had begun to colonise the rest of the world, with the likes of Christopher Columbus settling in north america. This gave rise to a new set of ruling institutions in
these countries. However, the institutions varied country by country, in north america the institutions set up were financial based compared to the plantation institutions of the caribiean.