Publication

This paper explores the evolution of a new paradigm in development policy based on new institutional economics (NIE), which stands in marked contrast to the prevailing Washington Consensus. It develops a reform agenda that is based on the NIE, identifies related policies and underlines the importance of good governance. Subsequently, the author clarifies the meaning of institutions and institutional reform and discusses the case of Argentina's fiscal federalism as an example for institutional reform. The paper concludes by underlining the importance of the role of informal institutions.