As a part of the “DEV TALKS” Series
Mario Pezzini, Director of the OECD Development Centre and Special Advisor to the OECD Secretary General on Development,
is pleased to invite you to
The idea that economic growth needs good governance and good governance needs economic growth takes us to a perennial chicken-and-egg debate: Which comes first in development — good governance or economic growth? For decades, positions have been sharply divided between those who advocate “fix governance first” and others who say “stimulate growth first.”
Professor Yuen Yuen Ang’s research finds a surprising answer to this debate: The first step of development is to harness normatively “weak” institutions to kickstart markets. She argues that China is a particularly rich illustration of this unorthodox lesson, drawing on processes of mutual economic and institutional changes since market opening in 1978. Yet, China is not a unique case.
Dr Ang will delve into this and a similar sequence of development seen across starkly different contexts. These include some past periods in Western development, as well as certain pockets in weak democracies today. Her findings reveal that: 1) institutions that help build new markets are not the same as the ones that preserve mature markets; 2) at early stages of development, normatively weak institutions can be functionally strong and 3) institutions and markets co-evolve across contexts, sharing a similar sequence despite different contextual details.