ABSTRACT
This chapter begins with the theoretical and comparative perspectives of the rationale for strong institutions in a country, followed by a discussion of national development strategy as a subject. Next, the chapter examines how effective national institutions can contribute to national development and, in this regard, an effort is made to improve understanding between strong institutions and economic growth. The last section undertakes a detailed analysis of institutions that impact on growth and national development. These include a productive and proactive public sector, strong labour market institutions, the rule of law and protection of property rights, integrity of governance and social inclusion that results in political stability. To conclude, the chapter calls on developing countries to understand the fact that building effective institutions that contribute to economic growth and national development is a critical issue that their governments need to appreciate in word and deed if they are to realize socio-economic advancement.
