The Enzymes of Economic Growth

Abstract

The way counries organize themselves in the global world, as well as the action of political blocs resulting from ideological forces and markets, lead us to reflect that the development and economic growth of nations will also depend on factors and variables associated with the size of their institutions and contingencies imposed on these states. More than postulating an ideal recipe for countries to grow and reach levels of sustainable development and wealth, it is urgent to measure the parameters designated as non-economic and that also contribute to the growth of countries. The influence of institutions, combined with the cultural, historical and political surroundings of countries, allow us to conclude that in the trajectory of evolution and development of nations, institutions force rigor and the way to base the metrics associated with a culture of development and economic growth. This thought was called the "Enzymes of Economic Growth", in analogy to the study of Chemistry, in which although these factors are not part of the traditional formula of Economic Growth, they behave as influencers of reaction. The book "Why the Nations Fail: the origins of power, prosperity, and poverty", by Daron Acemoglu and James A. Robison, empirically highlights the importance and role of institutions in the architecture of nations, establishing the structural link component that has been proven to interfere with aspects of economic development and growth. These new approaches, framed in Douglas North's institutionalist perspective, frame economic development, as well as the option of full freedom that societies have to organize themselves freely.