Concerns regarding quality of institutions are not just
limited to developing countries anymore. Harvard economist Larry Summers makes
a good point in Washington Post op-ed:
“While much political
debate takes place on a macro level, focusing on large-scale changes in
spending, tax or regulatory policies, I suspect that much of what frustrates
the public happens on a more micro scale. A government that has to install nets
under bridges to catch falling debris will not inspire confidence when it
aspires to rebuild other nations. When major companies cannibalize their
machinery for spare parts, it is hardly surprising that they are not trusted to
embark on voluntary long-run programs to control greenhouse gases, promote
diversity or develop technologies.”