New Institutionalism: A Framework for the Study of Government, 1960-2000
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Much scholarly effort has been devoted to understanding the persistent differences between rich and poor societies. In the search for why, dependent theorists attribute poor economic performance of Third World Nations to capital invasion by First World Nations from 1960s to 1970s. Recent works in Public Administration have been increasingly focused on the role of government and institutions in economic performance. New institutional theorists, opposing existing theoretical perspectives that regard state as a dependent variable, focus on the autonomy and capacity of the government. This paper argues that among the two different institutional approaches, historical institutionalism, tending to see individuals as rule-following satisfiers, is more effective than economic institutionalism as see them as all-knowing rational maximizers. Historical institutionalism especially shows its effectiveness in pointing towards the importance of multiple logics in the interaction of governments and markets in the development process from 1960s to 1990s. It will continue to draw attention in the multiple trajectories of economic policy and governmental development available to present-day developing countries. However, in order to develop a more useful approach for various individual problems and topics, we need to integrate other approaches flexibly.
Abstract
Much scholarly effort has been devoted to understanding the persistent differences between rich and poor societies. In the search for why, dependent theorists attribute poor economic performance of Third World Nations to capital invasion by First World Nations from 1960s to 1970s. Recent works in Public Administration have been increasingly focused on the role of government and institutions in economic performance. New institutional theorists, opposing existing theoretical perspectives that regard state as a dependent variable, focus on the autonomy and capacity of the government. This paper argues that among the two different institutional approaches, historical institutionalism, tending to see individuals as rule-following satisfiers, is more effective than economic institutionalism as see them as all-knowing rational maximizers. Historical institutionalism especially shows its effectiveness in pointing towards the importance of multiple logics in the interaction of governments and markets in the development process from 1960s to 1990s. It will continue to draw attention in the multiple trajectories of economic policy and governmental development available to present-day developing countries. However, in order to develop a more useful approach for various individual problems and topics, we need to integrate other approaches flexibly.
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