Public Policy Design in Developing Societies

Beyond Transplantation

By Huascar Pessali

Md Shoriful Islam
Outline
• Introduction
• Transplantation in the Economics Domain
• Overlapping Institutions
• Specificities and Compatibility Issues
• Grafting or Customization
• Alternative Architectures Comparison
• Final Remarks
Introduction
• How Public Policy Designed in Developing
Countries ?

Transplantation
Transplantation in the Economic Domain
• Underdeveloped Countries Benefited from
Transplantation

• Are transplantations always good for a country?

• Local Institutions and policies are incapable

Transplantation in the Economic Domain
Washington Consensus
Standard Macroeconomic Policy
Technological Change
Political & Geographical level
Human Competence Level
Overlapping Institutions
• In General,
• - Public Policy Universal set of Needs
• -Transplantation easy solution

• In Practical
• Two Kinds of Collective Habits
• -Historical Practices of a locality
• - Tendency of Public Agents rely on Transplantations
Overlapping Institutions
• Fixed Mindset of Policy Makers and the Local Agents
• Policy Maker – Technical Expertise
• Local Agents –Local specifications

• Lack interaction between of Policy makers and Local agents

• Compatibility Checks
Specificities and compatibility Issue
• One Size does fits for all
• Chang argued Current Policies and Institutions can not be
Transplanted
• Compatibility issues arise
• No Historical Socioeconomic Vacuum
• Institutions is defined as “ durable systems of established and
embedded social rules that structure social interactions.