Economic Development Requires Individual Approach

Economic development is a complex process which has been in the focus of researchers for decades. This process involves all the economic agents, including companies which make investments in equipment and technologies, workers who accumulate knowledge, authorities investing in the infrastructure and thus upgrading the quality of institutes and the society undergoing social modernization and gaining humanitarian views in course of time. All these economic development components are correlated. In particular, without modernization of the institutes it would be difficult to make the economy more complex, while without support the reforms fail to be implemented effectively. The latter may require transition decisions that secure the required support of the reforms.

The development process is complicated due to differences in limitations hindering development in different societies. Certainly, know-how or adequate protection of property rights are general components of the high standard of economic development, however, right now institutes and a lack of expertise may not necessarily be the main factors behind stagnation. As the economic development is a complex process, it requires a customized approach involving transition decisions.

Maria Kazakova, Head of the International Laboratory for Budget Stability Research, Gaidar Institute