The Limits of Institutional Reform in Development.
Wisor, Scott
The Limits of Institutional Reform in Development. By Matt Andrews.
Cambridge: Cambridge University Press, 2013.
Matt Andrews joins a chorus of recent authors arguing that efforts
to reform and improve public institutions in developing countries often
fail to achieve their desired aims. This is due to a context-insensitive
approach in which the formal rules of the game are changed to match best
practices, but little meaningful change is actually achieved in
increasing the responsiveness, integrity, or administrative capability
of state institutions. Andrews argues for "problem driven iterative
adaptation," whereby external actors such as the World Bank or US
Agency for International Development adopt a model of "purposive
muddling." On this approach, reforms are to be context sensitive,
focused on specific problems, and driven by a willingness to adapt to
new developments while taking small iterative steps to produce
meaningful changes. The book is important for systematically addressing
the question of institutional reform and the precise recommendations for
development agencies should be taken seriously, but the analysis leaves
important questions outstanding. Much of the governance reform in the
1990s did not fail to produce intended reform. Rather, significant
reforms were enacted, especially economic reforms including the
loosening of capital controls, the tightening of fiscal and monetary
policy, the privatization of state assets, and the removal of trade
barriers. Resulting economic crises in a number of developing countries
may not point to the limits of institutional reform, but rather to the
dominance of misguided macroeconomic policies that were promoted by
international institutions in the 1990s. Furthermore, failures of reform
are attributed to the misguided approaches of external actors. But
political elites have vested interests in maintaining the status quo. An
important empirical task is to determine whether purposive muddling is
better than best practice when elites have reasons to impede progress
for their populations. It would also be useful to know how external
reforms focused on external actors (such as transparency requirements in
the extractives industry emanating from the United States and the
European Union) might help promote institutional development. Despite
these remaining questions, the book deserves wide readership among those
concerned with the improvement of public institutions in developing
countries.
Reviewed by Scott Wisor