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Daron Acemoglu Conversation: Institutional development
THE WORLD THROUGH INSTITUTIONAL LENSES
A Conversation with Daron Acemoglu [9.12.12]
The issue is that when you look at the world from these sorts of institutional lenses, identifying problems becomes relatively easy. Solving them becomes very hard. It's no mystery how you get economic growth. You need to provide opportunities and incentives. But how do you make that political equilibrium? How do you make it so that everybody in society actually agrees and abides by a system that provides those incentives and opportunities even if it's not in their short-term interests? Those are the real challenges and that's exactly the sorts of issues we're seeing in Europe, it's the sorts of issues we're seeing in the United States, it's the sorts of issues we're seeing in Turkey. The problems are reasonably easy to identify. Developing solutions to them is hard because you cannot develop the solutions from the outside. It's not an engineering problem. At the end of the day you really need the grassroots solution to it. You really need people themselves to start taking part in the political process because any solution you impose from above is not going to stick unless it has the support of the people, unless the people themselves are the ones who push for it, who demand it, and who implement that solution.DARON ACEMOGLU is the Killian Professor of Economics at MIT. In 2005 he received the John Bates Clark Medal awarded to economists under forty judged to have made the most significant contribution to economic thought and knowledge. He is the author of
Why Nations Fail.
Daron Acemoglu's Edge Bio Page
[1 hour 4 minutes]
THE WORLD THROUGH INSTITUTIONAL LENSES[DARON ACEMOGLU:] When I got into economics one of the things that attracted me was thinking about why some nations are rich and some are poor, why some are democratic and others aren't, and why they're socially, politically, and economically so different. I grew up in Turkey and I came of age in the middle of a military regime and the economy wasn't doing well so those questions were in the air. That's the sort of thing that attracted me to economics.
When I came into economics I realized those weren't the issues that most economists worked on. I was still interested in economic development and economic growth, but I tried to think about it using the same approach as economists did. Then about 17 or 18 years ago, I started talking to James Robinson who became my long time collaborator, and James and I both had the same issues with the economics approach. A lot of the interesting issues related to politics, institutions, and the roots of the politics of policies and institutions were left out. We started working, thinking, and discussing to try to write papers on these things. At the time it wasn't a big area within economics.
More at: http://edge.org/conversation/the-world-through-institutional-lenses
or here: http://textospra.blogspot.com.br/2012/09/daron-acemoglu-institutional.html
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