Publication

This paper addresses the constraints to policy reform in developing countries by examining the strength and direction of the relationship between social structures, political institutions and economic policies. The author argues that one of the primary reasons why good politicians, especially in low-income countries, often enact bad policies is that they experience significant social constraints on their efforts to bring about reform, which are shaped by the degree of social cohesion within their country. The author shows that social cohesion determines the quality of institutions, which in turn has important impact on whether and how pro-growth policies are devised and implemented.