By Sujai Shivakumar

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Extra info for The Constitution of Development: Crafting Capabilities for Self-Governance

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When this happens, social capital is destroyed, learning is inhibited, and the developing society is left poorer for the aid it has received. Missing, Weak, or Bad Institutions In most countries receiving large amounts of development aid, institutions needed to cope adaptively with problems of collective action are either missing, weak, or bad. In countries with missing public institutions, individuals must deal primarily with their own family and networks of friends and neighbors to solve some of these basic problems.

For example, a 1980s Social Forestry Project funded by Sweden’s aid agency in Orissa, India, assumed that a growing population of forest users was contributing to severe forest degradation. Funding from Sweden supported afforestation activities led by the Orissa Forest Department, which included tree planting and organizing cooperatively managed plantations to produce fuel wood. Little thought was given at the time, however, to helping the forest users revive their own indigenous rules and capacity for self-organization to promote sustainable forest use (Gibson et al.

A key concept in IAD is that of a collective-action situation, which occurs whenever a desired joint outcome requires the input of several individuals. Such collective-action situations lie at the core of development. Indeed, almost all productive relationships involve some form of collective action. For example, while one person can farm a single, small agricultural plot, his or her productivity is greatly enhanced by creating diverse forms of teamwork through family, community, or corporate arrangements.

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