Ispravnikova, N.R. Effi cient direction of development of the reform: institutional abilities and corruption limitations.

Abstract: “Institutional” modernization is aimed at the institutional reforms, which are aimed to improve the quality of institutions, to suppress the corruption, to avoid administrative barriers, to improve the human capital, etc. The developed institutions allow to form positive conditions for economic growth and limit the ability of the politicians to extract corruption rent, requiring them to improve the institutions further. However, improvement of institutions and creation of new institutions is not always possible. For example, such a situation may take place if the system, which has insuffi ciently developed political culture, gets into the institutional trap. In such a trap, the reform turns to the ineffi cient direction, and its further development depends on how fast shall it fi nd the way out of the institutional trap.

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