Institute for Forecasting

In a globalized World the factor endowments and quality of the institutional framework are of high importance for economic development of countries. Inadequate understanding and underestimation of institutions’ importance may have negative impacts on economic development. A flexible economy, resilient to systemic crises must operate within an optimal mix of institutions. The mix promotes for synergies among the smart, inclusive and sustainable growth types. Specific types of growth are highly dependent on an efficient layout of institutional frameworks. The growth frameworks sometimes are complementary, but  sometimes also contradictory. A mechanical transfer of institutional frameworks between the countries can result in a suboptimal setting of the institutional mix. Creation of institutional mix therefore is a delicate task. It depends on (a) ability to measure efficiency of institutional framework for specific types of growth, and (b) mix optimization via a number of quantitative and qualitative methods.sometimes also contradictory. A mechanical transfer of institutional frameworks between the countries can result in a suboptimal setting of the institutional mix. Creation of institutional mix therefore is a delicate task. It depends on (a) ability to measure efficiency of institutional framework for specific types of growth, and (b) mix optimization via a number of quantitative and qualitative methods.