The New Progressivism and its implications for institutional theories of development

Abstract

Context: a growing body of literature argues that the world is better off
now than it ever has been and that things will only get better. This trend,
long identified in advanced economies, has more recently manifest in
low- and middle-income countries and is attributed to the rapid diffusion
of technological innovation through global trade, investment, communica-
tions, research and educational networks.

Purpose: we label this literature “New Progressivism”, mapping its main
claims and examining its limitations. New Progressivists pay insufficient
attention to the interaction between technological innovation and institu-
tional capacity. More specifically, we show that the New Progressivists
fail to explain existing patterns of stagnation and regression, and suggest
a modified approach.

Approach and Methods: accounting for the significance of institutional
pre- and co-requisites in facilitating the uptake of innovation, we analyze
the different interactions between technological innovations and institu-
tional capacities. We then provide illustrative examples of these relation-
ships drawn from the areas of health, education, and financial development.

Findings: technological innovation has vastly improved human well-be-
ing in many countries in recent decades, but understanding why innovation
had been adopted in some jurisdictions but not others and why it has not
always proven beneficial if adopted requires an account of jurisdiction-
specific institutional landscapes.

Policy Implications: in many contexts technological innovations will not
achieve their full potential without attention being paid to their institutional
pre- or co-requisites. Technological innovation, by itself, provides no easy
escape from the often admittedly daunting challenge of reforming dysfunc-
tional institutions in low- and middle-income countries.

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