Part 1 – The recent literature on growth and decelopment places increasing emphasis on the importance of institutions. Choose a country and explain briefly its institutional framework. In doing so try to think avout distinctions between formal and informal institutions, and the importance of property rights. Try to offer some thoughts as to how this institutional setting affects incentives and economic growth. Part 2 – Given your answer to Part 1, identify what you think are the main institutional reforms the country should undertake to facilitate growth and development. What might be the barriers to the country doing this?
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