In the last 30 years the World has been swept by neoliberal doctrine. Under neoliberal conceptions, freedom of the market mechanism has precedence in the process of development. Neoliberalism has had a major impact on the mindset of policymakers, on government strategies for development and on economic performance. This thesis is about the economic consequences of neoliberalism in Brazil. It approaches the problem from a historical perspective. By examining government economic strategies in Brazil from the 1930s through the 1970s it undermines a central neoliberal argument that government interventions in the economy are either inimical or irrelevant to economic development. While government failures did occur indeed, in the Brazilian case it is shown that the government performed a crucial role in this period in building key institutions that guided market forces towards industrial transformation. Since the mid-1970s, Brazil has been a laboratory for neoliberal economic policymaking. Restrictive macroeconomic policies alongside liberalised markets have been the cornerstones of policymaking. The second line of argument developed here is that neoliberalism has since constrained economic development in Brazil. During this period the country has been through several financial crises and has experienced low economic growth and unprecedented unemployment. Compared with the previous period of government-led development, neoliberal policies and institutions fall far behind in terms of overall economic performance. Thirdly, it is argued that under neoliberalism government policy and institutions in Brazil have been directed to satisfy rentiers’ interests at the expense of a socially acceptable economic development. Finally, this thesis calls for the reinstatement of discussion over the government’s role as an agent of a democratic, economic and social ransformation. This is a discussion that has been obstructed by neoliberal doctrine for too long.

Today there is no agreement as to how developing countries can achieve sustained economic growth and wellbeing. Over the last 50 years many suggested policy panaceas have failed. Policy makers are now faced with growing economic challenges and confusing policy prescriptions. Against this background, the re-emerging study of institutions now offers new promise in explaining why development has so far eluded so many countries, and consequently, what can be done about it. This thesis deals with questions which to date have only received partial or cursory attention. The study asks: What really are institutions? Why do they matter? What can we learn about them that can help us deal with the current challenging development debacle? This study starts by reaffirming what institutions are. It shows that institutions are inescapable influencers of the way we relate to each other, and the effects we have on our societies’ economic development. Yet so far, scholars and policy makers have not yet fully taken up the opportunity of identifying and utilising the insights that the institutional perspective offers. This study deliberately picks up the challenge. Using the experience of the Uganda coffee sector, it shows that the nature of institutions can be better understood, and their role and impact, better addressed towards pressing development questions. The study shows that by integrating old and new institutionalist perspectives and theories of institutions and institutional change, it is possible to make much more progress towards understanding, explaining and addressing the role and influence of institutions in the development of an economic sector. In so doing this study goes beyond existing works on definition, taxonomy and explanation of institutional influence. It raises new insights to be considered as we face today’s contemporary development challenges. This research should therefore be of interest and value to researchers, students, policy makers and entrepreneurs concerned with economic development and the factors that shape and influence it in practice.

The success of the local development experiences after the 1980s is associated with the non-economic components as well as the economic ones in the contemporary development literature. Most apparently, the literature seems to be intensified on the local institutions and on the local social interaction which creates reciprocal cooperative trust relations. These socially constructed local institutions refer to the local rules, routines and patterns having been directly influencing the relation among the local actors of development. They are also seen to be the organizational actors of development being responsible for the social inheritance of traditional and even tacit local knowledge and facilitating the adaptation of other local actors to the changing supra local networks. In many cases, however, the age groups dominating these successful development experiences have come to the edge of or already exceeded the age limits of active workforce cohorts currently. The coming decade, therefore, indicates a succession period from these generations leading to the emergence of successful development experiences to their successors. This period is identified in this study as the generational transition. This concept represents a newly emerging field of contradiction and this study analyses and conceptualizes the influences of generational transition on the local pathways of development both in terms of the tensions between diverse generations, and in context of tensions between the institutions and successor generations and among the institutions being socially constructed by diverse generations. These tensions are analyzed in this study through the Kayseri experience which has created a successful local development practice after the 1980s by focusing the generational transformation of both the local development path and the socio-spatial patterns of the town. This analysis indicates three vitally important outcomes of generational transition. Firstly, the local socio-spatial institutions have a crucial importance in the social inheritance of the traditional local knowledge and they have been transformed by the influences of generational transition. Secondly, it is found that the economic organizations have been transformed generationally in tune with the generational transition. And finally it is found that the generational transition has directly been influencing the local development path by destroying or changing some institutions and by creating some new ones.

Thesis (MCRP)--Morgan State University, 2004. / "UMI Number: 1420566"--Prelim. p. Includes bibliographical references.

Thesis (M.A.)--Duquesne University, 2004. / Title from document title page. Abstract included in electronic submission form. Includes bibliographical references (p. 32).

Thesis (MCRP)--Morgan State University, 2004. / "UMI Number: 1420566"--P. before T.p. Includes bibliographical references.

1 Charles University in Prague Faculty of Science Department of Social Geography and Regional Development ACTORS AND MECHANISMS OF REGIONAL DEVELOPMENT ON EXAMPLE OF THE ÚSTÍ REGION Dissertation thesis summary Petr Hlaváček Supervisor: Doc. RNDr. Jiří Blažek, PhD. Ústí nad Labem 2010 2 CONTENT Introduction and theoretical framework Hypotheses and structure of the dissertation Conclusion Selected literature 3 Introduction and theoretical framework Current research of regional development sees themes focused on the institutional context of regional development in the foreground [Rutten, Boekema 2007], regional mechanisms are evaluated, key categories and groups of actos for the long-term improvement of the competitiveness of the region are sought [Breschi, Malerba 2007]. The theory is that regional development operates with various actors concepts. Traditional neo-classic approaches stemming from the individualized concept of a actor in the market environment are often completed with institutional approaches that highlight the understanding of the actor as an entity interwoven by many specific market mechanisms and social structures - production chains, subcontractor relationships and further formal and informal boundaries that define market potential. From the institutional economy point of view, the actor...

African economies, including Nigeria continued to perform poorly despite the adoption of economic policy reforms in the 1980s. An explanation for the failure of economic policy reforms was therefore sought from an institutional perspective. Since active state intervention in the economy was the rationale given for the economic crisis of developing countries, the conventional case for an active state which rested on the need to correct for market failure was counterposed with the argument that the economy was best coordinated by market forces given that the state was not benevolent, omniscient or omnipotent. However, the state has played an important role in the transformation of late developers while a state-market dichotomy takes no account of institutional factors. The widespread adoption of economic policy reforms owed more to an ideological shift in the development paradigm than to the debt crisis and there was a great deal of controversy about the theoretical foundations and impact of these reforms contrary to claims of a consensus. An institutionalist political economy which recognises that the market is not the only institution and that economic transformation requires the positive use of political power was proposed. Such an approach takes account of history, politics and the institutional diversity of capitalism. A more nuanced view of state intervention was therefore advocated. The importance of institutional arrangements in the quest for economic transformation underscored the inadequacy of structural adjustment which was hampered by the lack of price and institutional flexibility as well as other institutional constraints. The Nigerian experience of structural adjustment shows that long term growth prospects were not enhanced and that the reforms tended to favour the financial sector over the real sector. The failure of economic policy reforms in Nigeria can be attributed to the continued presence of constraining institutional factors and the absence of a positive use of political power. / Economics / D. Comm. (Economics)

La letteratura economica e politologica evidenzia un ampio consenso sull’esistenza di un effetto positivo sulla crescita di lungo periodo da parte di diritti di proprietà, stato di diritto e, in generale, istituzioni economiche. Contestualmente, il rapporto tra democrazia e crescita rimane teoricamente poco chiaro mentre l'evidenza empirica è in gran parte inconcludente. Questo studio cerca di riconciliare i fatti stilizzati su crescita e democrazia qui evidenziati, che dimostrano l'esistenza di un "successo sinergico" negli ultimi trent'anni, con la teoria esistente e l’evidenza empirica. Dopo aver dettagliatamente scandagliato la letteratura esistente, questo studio suggerisce che l’effetto della democrazia sulla crescita di lungo periodo sia indiretto, mediato dalle istituzioni. Per testare questa ipotesi si propone un modello di analisi originale, applicato ad un panel di 194 paesi osservati nel periodo 1961-2010, utilizzando lo stimatore System-GMM e una vasta gamma di controlli. I risultati dell’analisi suggeriscono che la democrazia è positivamente correlata a istituzioni “più favorevoli” alla crescita economica, in particolare diritti di proprietà e stato di diritto. Inoltre, l’evidenza empirica supporta la tesi di un effetto indiretto complessivamente positivo della democrazia sulla crescita. Infine, si propone uno sviluppo ulteriore dell’analisi, concentrato sulle determinanti della democrazia, ricercando possibili concause nell’interazione con i processi economici. / Economic and political science literature show a wide consensus about the positive effect of property rights, contract enforcing arrangements and, more generally, economic institutions to long-run growth. Conversely, the linkage between democracy and growth remains unclear and not conclusively supported by empirical research. This work is an attempt to reconcile the stylized facts about democracy and growth –evidencing a long-run “synergic success” between the two terms – with theoretical and empirical literature. After thoroughly surveying the relevant literature on the topic, this study claims that the effect of democracy on long-run growth is indirect, channeled by the means of institutions. To test this hypothesis, the thesis provides an original analytical framework which is applied to a panel of 194 countries over the period 1961-2010, adopting a System-GMM estimation technique and a wide range of robustness controls. The results suggest that democracy is positively related to “better” (namely more growth-enhancing) institutions, especially with respect to economic institutions and rule of law. Hence, the findings suggest that the overall effect on growth is positive, indirect and channeled by institutions. However, since the results are not completely conclusive, a further investigation is suggested, on further determinants of democracy, potentially affecting its pro-growth effect.

African economies, including Nigeria continued to perform poorly despite the adoption of economic policy reforms in the 1980s. An explanation for the failure of economic policy reforms was therefore sought from an institutional perspective. Since active state intervention in the economy was the rationale given for the economic crisis of developing countries, the conventional case for an active state which rested on the need to correct for market failure was counterposed with the argument that the economy was best coordinated by market forces given that the state was not benevolent, omniscient or omnipotent. However, the state has played an important role in the transformation of late developers while a state-market dichotomy takes no account of institutional factors. The widespread adoption of economic policy reforms owed more to an ideological shift in the development paradigm than to the debt crisis and there was a great deal of controversy about the theoretical foundations and impact of these reforms contrary to claims of a consensus. An institutionalist political economy which recognises that the market is not the only institution and that economic transformation requires the positive use of political power was proposed. Such an approach takes account of history, politics and the institutional diversity of capitalism. A more nuanced view of state intervention was therefore advocated. The importance of institutional arrangements in the quest for economic transformation underscored the inadequacy of structural adjustment which was hampered by the lack of price and institutional flexibility as well as other institutional constraints. The Nigerian experience of structural adjustment shows that long term growth prospects were not enhanced and that the reforms tended to favour the financial sector over the real sector. The failure of economic policy reforms in Nigeria can be attributed to the continued presence of constraining institutional factors and the absence of a positive use of political power. / Economics / D. Comm. (Economics)