ABSTRACT
This conclusion presents some closing thoughts on key concepts discussed in the preceding chapter of this book. The book argues that institutions need to be viewed as the means by which policies and laws are formulated, enacted, implemented and enforced. The institutions that lead to economic growth are the ones that governments build in order to accomplish their development strategies. The point about the importance of institutions creating an enabling environment for growth is not always well made in the development literature, but in many respects it boils down to the ability of governments to execute their plans. Both endogenous growth theory, which considers technology usage to be a variable that differs in each country, and developmental state models, which see governments as actively guiding their economies, give institutions a central role. Singapore and Malaysia have been able to transform their economies and achieve prosperity in less than fifty years.
