Evaluating quality of the institutional basis of economy: methodological and practical aspects

Abstract

Recent institutional studies do not offer all-purpose receipts for pushing up institutional reforms. Further institutional studies are, therefore, required, which would take due account for the singularity of local conditions and specifics of new institutes formation, have better insight in the overall institutional dynamics, and be based on advanced evaluation methodologies. The article aims to outline the theoretical and practical aspects of quality evaluation of the institutional basis of the economy.

The review of theoretical, methodological and applied aspects involved in quality evaluation of the institutional basis of the economy shows that they are specific to the origin of the institutes and the vectors of their interactions with the external environment. The quality of institutes is a multidimensional phenomenon that cannot be measured by only traditional indicators of effectiveness.

The applicability of three-factor model for quality evaluation of government institutes with social purposes for understanding of the institutes’ evolution is shown.

The analysis shows that, all-purpose methods for evaluating the institutional basis, capable to push up institutional reforms, are unlikely to be constructed in the near future; a major part of the evaluation-specific issues would require supplementary studies with account for local conditions. Regarding institutional reforms it should be said that the reforming strategy, instead of focusing on comprehensive reforms, should rather be concentrated on limited range of key institutional goals. Imports of institutes need to be balanced with their adaptation to local environment. This implies rather strict requirements to the transparency anti effectiveness of decision-making on strategies and tactics of the ref arms. It is important that the adequate emphasis be made on strengthening the institutes making the economy insensible to external shocks, such as the social security system and mechanisms for consultations between the government and the key social groups.