Institutional capacity constraints and corruption strategy of modernization

Abstract

«Institutional» modernization is focused on institutional reforms aimed at improving the quality of institutions, corruption, suppression, elimination of administrative barriers, improvement of human capital, etc. Developed institutions, create favorable conditions for economic growth, limiting the ability of corrupt politicians to extract rents and encouraging them to improve insti- tutions. But improvements in key institutions, as well as the creation of new, not always possible. In particular, such a situation occurs if the system with under- developed political culture is an institutional trap. Once in the institutional trap, the reform turns out to be ineffi cient trajectory. Its further development depends on how quickly will fi nd a way out of this trap