Examiners want to see answers that are, above all, well-argued and structured, with a clear hypothesis/answer and well-ordered sub-sections. The nature of this subject is one of very difficult problems about which there is sometimes little consensus in the academic or professional worlds. This has meant that many of the issues dealt with in the course are highly contested. A good answer is therefore one which demonstrates knowledge of both sides of the debate while still defending the stance it subscribes to. This is done through rigorous theoretical arguments, supported by empirical evidence, as one might expect for a field about which the theory is not yet settled. What constitutes good evidence spans a broad range, from qualitative evidence, to stylised facts, to detailed statistical and econometric evidence. The examination tests familiarity with the underlying theory as well as with the subject guide itself. Wider reading and engagement with the original texts is always obvious in the case of the best performing students and evidence of this wider reading and understanding of the main original works is looked for by the Examiners. The subject guide suggests some further readings which provide an overview and introduction to a wider secondary literature. Students are advised to use the literature in a way that demonstrates critical analysis of the argument and not merely as a list of alternative interpretations offered by other scholars.

In order for countries to develop the only thing they need is good institutions. Discuss.

Reading for this question This question is designed to get you to distinguish between institutions and organisations and how they affect development. A first port of call is the work of Douglass North, in particular his book Institutions, institutional change and economic performance (Cambridge: Cambridge University Press, 1990). The question draws upon Chapters 1: Institutions, organisations and development management, 8: Geography, values, factor endowments, institutions, 9: Analytical narratives of development failure, 10: Analytical narratives of development success, and 11: Towards a theory of development management, from the study guide. A broad range of literature from economics and political science, with key authors such as Samuel Huntington, Gary Becker, James Buchanan, Atul Kohli and Robert Dahl, among others is relevant.

Approaching the question This question is deliberately very broad and you have to demonstrate knowledge of institutions and organisations and how they matter for development. It is crucial to be able to distinguish institutions from organisations. In particular you should have a good grasp on Norths definitions of these two concepts, with attention to institutions as a set of rules (rules of the game) and organisations as actors that function within institutional frameworks and alter institutions as well (players of the game). Indeed, it is important to make it clear to the examiners that you not only recognise the difference between these two concepts but that you understand how they interact with each other, especially when and how organisations will alter institutions across time and space. You should also be aware of different types of organisations, including the differences between public organisations i.e. those within government and private institutions, especially firms but also non-governmental organisations (NGOs). You should be clear regarding the different incentives each faces and how these incentives alter the functioning of these different types of organisations. A good answer will focus on how institutions and organisations both matter for development, with relatively equal space for each concept. You should also argue how both play an important role in the development process. Empirical examples are important, especially to demonstrate how good institutions and organisations can promote development while bad institutions and organisations can do the opposite. You should be able to distinguish as well when and where new institutions are created and imported and for what reason; you should be able to explain why importing good institutions into regions which previously only had bad institutions is problematic due to the embedded nature of institutions. A very good essay will discuss why either institutions or organisations might be more important than the other for development