Dani Rodrik sums up his talk at the AEA Meetings, in a session at which papers by him, Bill Easterly, and Avner Greif were presented:

What’s traffic in Hanoi and St. Petersburg got to do with institutional reform?

A lot, actually.

If you think lack of formal rules (in property rights or contract enforcement) always constrains economic activity, watch this. And if you think an improvement in formal institutional rules always improves efficiency, watch this.

These are the videos I had embedded in my presentation on institutional reform at the AEA meetings–but alas could not use, due to lack of wireless internet at the New Orleans Hilton. Read on to see the connection.

And I do recommmend you read on.