'Institutions fix the confines of and impose form upon the activities of human beings.' --Walton Hamilton, 'Institutions', 1932. The 'World Development Report 2002: Building Institutions for Markets' undertakes the complex issue of the basic institutions needed for markets to function properly. This year's 'World Development Report' goes beyond a simple examination of institutional structure and explores the functions of institutions. Recognizing that one size does not fit all, the report asks what do all institutions which support markets do? The answer is simple: Institutions channel information, define and enforce property rights, and increase or prevent competition. Understanding the functions that current institutions and their proposed replacements would provide is the first step. The report contends that once you have identified the institutional functions that are missing, you can then build effective institutions by following some basic principles: - Complement what exists already - in terms of other supporting institutions, human capacities, and technology. - Innovate to suit local norms and conditions. Experimenting with new structures can provide a country with creative solutions that work. - Connect communities of market players through open information flows and open trade. Open trade and information flows create demand for new institutions and improve the functioning of existing structures. - Compete among jurisdictions, firms, and individuals. Increased competition creates demand for new institutions as old ones lose their effectiveness. It also affects how people behave - improving institutional quality. These broad lessons and careful analyses, which links theory with pertinent evidence, are provided in the report. 'World Development Report 2002: Building Institutions for Markets' contains selected 'World Development Indicators'.

Labour market institutions, including collective bargaining, the regulation of employment contracts and social protection policies, are instrumental for improving the well-being of workers, their families and society. In many countries, these instituti

Describes how to run a sound and efficient bank in a liberalized financial environment.Also available:Banking Institutions in Developing Markets. Volume 2: Interpreting Financial StatementsChris J. Barltrop and Diana McNaughton152 pages / (ISBN 0-8213-2218-4) / Stock No. 12218 / $20.00 / Price code S2

Markets should give incentives to engage in wider trade, forge the ability to use resources, and skills fully, and provide the opportunity to increase incomes, and accumulate assets. Despite underlying problems, many people in both developed, and developing countries do engage in productive, and rewarding market activity, for income from market participation is the key to economic growth for nations, and to reducing poverty for individuals. This report is about enhancing opportunities for poor people in markets, and empower them, provided regulatory frameworks, law enforcement, and organizational promotion accompany market transactions. Hence, building institutions that support the development of markets is the primary focus of this report, analyzing what institutions do to promote growth, and facilitate access, and suggesting how to build effective institutions. In understanding what drives institutional change, the report emphasizes the importance of history, highlighting the need to ensure effective institutions through: a design that complements existing institutions, human capabilities, and available technologies; innovations to identify both institutions that work, and those that do not; communities of market players connected through open information, and trade; and, the promotion of competition among jurisdictions, firms, and individuals. This overview is a presage to the World Development Report 2002, which shows that institutional strength ensures stable, and inclusive growth.