Institutions and Development in Latin America: A Comparative Study

Princeton University, Princeton NJ

Investigators

Abstract

The project will be based on a comparative analysis of "really existing" institutions in five Latin American countries with the aim of understanding their internal dynamics and their bearing on economic and social development. The proposal is framed by the new "institutional turn" in development economics and sociology and aims at furthering inter-disciplinary cooperation as well as strengthening ties with major Latin-American research centers. Theoretically, the study draws on recent theoretical work by Portes that seeks to clarify the definition of "institutions" and their relationships to other component elements of social structure and culture. Six hypotheses are advanced, based on this framework that predict the quality of institutions and their developmental potential on the basis of three internal and three external characteristics. These criteria include, among others, meritocracy, immunity to corruption, and proactivity toward the external environment. Empirically, the study employs a variant of Qualitative Comparative Analysis (QCA) based on Boolean algebra to analyze data collected by participating investigators on each institution and each country. Identical data collection methods will be used in each case, from compilation of secondary records to direct interviews with organizational personnel at various levels and major users/clients. This method will facilitate the comparability of results. The five countries selected are Argentina, Chile, Colombia, the Dominican Republic, and Mexico. In each country, collaborative ties have been established with prominent research institutions. These will provide local home bases for each team of investigators. Institutions selected for study in each country include the Stock Exchange, the Public Health Service, the Post Office, the Tax Collection Service, and the Civil Aeronautics Authority. Each of these plays a distinct role in the daily life and prospects for development of these nations. A comparative analysis of this kind has never been attempted before. Impacts of the study are three-fold: First, on the rapidly evolving field of institutional studies in economics and sociology, by generating information on real institutions and testing current theories about their bearing on national development. Second, on governments of selected nations, by producing hitherto unavailable evidence on important public and private agencies and on their varying quality and effectiveness. Thirdly, on participating research centers throughout the region by strengthening their analytic capabilities and opening new lines of investigation for the future. The project will further cooperation between scientific institutions and help establish durable ties between scientists in the United States and Latin America.