What leads to national progress? The growing consensus in the social sciences is that neither capital flows, nor the savings rate, nor diffuse values are the key, but that it lies in the quality of a nation’s institutions. This book is the first comparative study of how real institutions affect national development. It seeks to examine and deepen this insight through a systematic study of institutions in five Latin American countries and how they differ within and across nations. Postal systems, stock exchanges, public health services and others were included in the sample, all studied with the same methodology. The country chapters present detailed results of this empirical exercise for each individual country. The introductory chapters present the theoretical framework and research methodology for the full study. The summary results of this ambitious study presented in the concluding chapter draw comparisons across countries and discuss what these results mean for national development in Latin America. " Institutions Count is an impressively collaborative project and a valuable contribution, both for its lucid presentation of case study data across countries and cultures as well as its new insights to the roles institutions play in national development." Bryan R. Roberts, Professor of Sociology at the University of Texas, Austin " Institutions Count by Portes and Smith is a significant addition to studies of institutions as well as studies of development. The main contributions include a clarification of the concept of institutions; an impeccable methodology for the empirical analysis of five institutions in five developing countries; and an innovative, comparative analysis of the outcomes of the individual studies. It is to be recommended to scholars across the social sciences who are frustrated by the lack of rigor in the existing literature on the increasingly popular topic of institutions." Barbara Stallings, Wm. R. Rhodes Research Professor, Brown University " Institutions Count is an impressively collaborative project and a valuable contribution, both for its lucid presentation of case study data across countries and cultures as well as its new insights to the roles institutions play in national development." ―Bryan R. Roberts, Professor of Sociology at the University of Texas, Austin " Institutions Count by Portes and Smith is a significant addition to studies of institutions as well as studies of development. The main contributions include a clarification of the concept of institutions; an impeccable methodology for the empirical analysis of five institutions in five developing countries; and an innovative, comparative analysis of the outcomes of the individual studies. It is to be recommended to scholars across the social sciences who are frustrated by the lack of rigor in the existing literature on the increasingly popular topic of institutions."―Barbara Stallings, Wm. R. Rhodes Research Professor, Brown University Alejandro Portes is Professor of Sociology and Founding Director of the Center for Migration and Development at Princeton University. He is the author of several UC Press books, including Legacies, Ethnicities , Immigrant America and City on the Edge . Lori D. Smith is completing her doctorate in Sociology at Princeton. Institutions Count Their Role and Significance in Latin American Development By Alejandro Portes, Lori D. Smith UNIVERSITY OF CALIFORNIA PRESS Copyright © 2012 The Regents of the University of California All rights reserved. ISBN: 978-0-520-27354-2 Contents List of Illustrations, vii, Preface, ix, Acknowledgments, xiii, 1. Institutions and Development: A Conceptual Reanalysis Alejandro Portes, 1, 2. The Comparative Study of Institutions: The "Institutional Turn" in Development Studies Alejandro Portes and Lori D. Smith, 24, 3. Institutional Change and Development in Argentina Alejandro Grimson, Ana Castellani, and Alexander Roig, 39, 4. Institutional Change and Development in Chilean Market Society Guillermo Wormald and Daniel Brieba, 60, 5. The Colombian Paradox: A Thick Institutionalist Analysis César Rodríguez-Garavito, 85, 6. Development Opportunities: Politics, the State, and Institutions in the Dominican Republic in the Twenty-First Century Wilfredo Lozano, 113, 7. The Uneven and Paradoxical Development of Mexico's Institutions José Luis Velasco, 130, 8. Conclusion: The Comparative Analysis of the Role of Institutions in National Development Alejandro Portes and Lori D. Smith, 167, Appendix: Investigators, 191, Contributors, 193, Index, 195, CHAPTER 1 Institutions and Development A Conceptual Reanalysis Alejandro Portes Recent years have brought a significant change in the evolution of economics and sociology, including an unexpected convergence in their approach to issues like firms and economic development. This convergence has pivoted around the concept of "institutions," a familiar term in sociolog