Title: Second-best institutions
First published: 2008
Description: "The focus of policy reform in developing countries has moved from getting prices right to getting institutions right, and accordingly countries are increasingly being advised to move towards "best-practice" institutions.  This paper argues that appropriate institutions for developing countries are instead "second-best" institutions -- those that take into account context-specific market and government failures that cannot be removed in short order.  Such institutions will often diverge greatly from best practice.  The argument is illustrated using examples from four areas: contract enforcement, entrepreneurship, trade openness, and macroeconomic stability"--National Bureau of Economic Research web site.
LC classification: HB1