In the article Institutions
and economic development: theory, policy and history, the author discusses the understand
of institutional economics because he examines the current dominant discourse on
institutions and economic development. One on the main points that the author
made was the pressure for the adoption of GSI by poor and wealthy countries
also known as developing countries.  The
author discusses the problems with better discourse on institutions and economic
development. There are two problems first one is that it almost solely assumes
that fate runs from institution to economic development when ignoring the
possibility that economic development changes institutions. Second problems are
the economics focuses on the relationship is theorized in a rather simplistic
way.  One of the questions that caught my
attention was “Do institutions that provide greater economic freedom
lead to faster growth?” the answer was not simple to define after reading it
several times, but form my understanding is different people with different
values will see different degree of freedom in the same market. Everybody has different
vision in the degree same market. Different perspective and different viewpoints.
The author also brings neoclassicals economist are in the market and how their ideas
effects the if there is a greater economic freedom lead to faster growth. The other
also mentions other two more points. The author questioned if the relationship
between institutions and economic development always the same?  Well, according to the author, when if an
institution promotes growth, it may actually hamper economic growth in bigger
dose.  Second, even of the same country
does good to one country they do bad for the other.  This means that there needs to be the same level
of protection of IPRs that can beneficial for countries. This is another reason
for developing and developed countries.  The
IPR in developed and developing countries is by far very different.