When the financial crisis of 2008 hit the world some countries responded with cutbacks and swift reforms. Others dug in and resisted change. Why do nations respond so differently in the face of adversity, and what are the consequences? In recent years economists have shown convincingly how a countrys institutions determine its growth rate and development. In Renaissance for Reforms this analysis is taken one step further. What does it take for nations to improve their institutions? Is a crisis a necessary condition? Can politicians get re-elected after introducing market-oriented reforms? How have such reforms helped countries during the recent financial crises, and what lessons are there to be learned for the future? These issues are addressed based on current research and the authors own analysis.
”This is the required companion volume to Why Nations Fail by Acemglou and Robinson. While those authors demonstrate that poor institutions are the explanation for economic failure, it is Sanandaji and Fölster that provide the successful strategy to overcome the obstacles. They demonstrate that market reforms lead to both economic and electoral success. Policy makers no longer have an excuse for not following the best policies. Renaissance for Reforms is required reading for all interested in policy change: academics, students, policy makers and politicians.” – Dr Nigel Ashford, Institute for Humane Studies, George Mason University