The very fact in order to provide the same institutional function it does not need a particular institutional form. Likewise a particular institutional form can deliver completely different functions in various country contexts. This concern shows that appearance can be deceptive. The distinction between formal and informal institutions illustrates this concern. Where easily observable formal institutions (f.e. written regulations) come at odds with less tangible informal institutions (f.e. customs and traditions) it might be very hard to enforce formal institutions. For instance, a reformed legal and regulatory framework governing the exploitation of whichever kind of natural resource can give rise to social conflicts if isn’t suitable for prevailing informal institutions, for example customary land use practices on which subsistence livelihoods are sustained.

If focus is narrowly positioned on particular types of institutional forms, it can also undermine institutional diversity. Blue prints and best practice models that have guided institutional reforms across many developing countries, have tended to disregard that some formal institutional solutions work nicely in certain contexts but are unsuitable for other people. So if transferring particular types of institutions across countries doesn’t guarantee the expected functions materialize, this suggests that it’s not wholly irrelevant to think about how institutions relate to context characteristics and if the formal institutions of a country political-administrative system are internally consistent. For example, weak horizontal checks and balances in certain democracies may be due that political systems have been modeled along a presidential system whereas administrative set-ups have still retained options that come with a Westminster type democracy. New formal institutions may also have ignored older but persistent informal political institutions, for example traditional authorities at sub-national levels. Fiscal decentralization programs have sometimes completely ignored the latter.

Another example where the adoption of special formal institutions has not achieved consistent results may be the knowledge about natural resource funds. Despite them being at the top the to-do-list for emerging mineral-rich country,it had been found that on average natural resource funds don’t contribute to better fiscal policy. They claim that political economy problems lie in the supply of the problem and propose further research to identify additional institutional solutions.

Lastly, OECD countries show that institutional diversity across countries isn’t a hindrance to achieving similar economic and social outcomes. Of these countries it is well researched that diverging institutional matrices deliver similar results, including regarding social policy. They also indicate the significance of institutional compatibility across sectors and across a political-administrative system.

Some types of institutions have obtained more attention than others, suggesting that they are more essential. Much emphasis continues to be positioned on the stability of property rights as a condition for economic growth. The actual argument has been that without asserted property rights economic agents face inhibitive uncertainties about whether investments undertaken today will create the expected future returns that render current sacrifices worthwhile. Put simply, if economic actors are uncertain about retaining increases using their efforts, they are unlikely to attempt potentially beneficial investments.

However, the emphasis on property rights has ignored that the property rights system comprises an entire group of institutions that does not easily aggregate. Promoters from the property rights argument have been able to pick and choose which and whose property rights they deem to be most important. It is argued that institutional reforms in developing countries have often focused on strengthening the home rights for a narrow group of economic actors, while for that wider public property rights have remained poorly defined. Those away from ‘bell jar’ cannot increase their productivity as their lack of minimally secure rights undermines the provision of collateral and thus use of savings.

Linked to the focus on the stability of property rights can also be the assumption that stronger protection of private property rights is always better. But although some protection of property rights is invariably absolutely and indisputably necessary, this does not mean that stronger protection is in fact always better. Changes to and also the creation of new property rights together with alterations in technology, population density or political balances of power have historically been good for economic growth. Examples include historical research on the emergence of mineral rights in the American west.

Harder would be to acknowledge the truth that changes to property rights leading to economic progress come with huge social costs. Numerous studies on agrarian change and industrialisation have made this point. In the European context these studies have contributed to understanding differences and similarities within the growth and development of social safety nets along with other social policy features. In principle this points to a potential transformative role that social policies can enjoy poor exploiting mineral wealth and earning cash.

The ‘success story’ thus remains less about providing incentives for private investors. It’s about the political ability of the nation leadership to build state institutions that have provided an effective infrastructure for advancing economic and social development.

All the nations around the globe would be developed nations in the future depending upon several factors. There are variations within the economic growth and development of the countries due to historical, economical, social, geographical, political reasons. The civilized world around the globe like the U.S.A., analysed the neighborhood conditions effectively and properly at an early stage and therefore their economic policies happen to be exactly suitable for their nations. Hence it could be a developed nation in an initial phase.

India would have been a developed nation been with them not been a colony of Britishers, coupled with the population growth rates minimised. India also has been spending huge amounts on defence because of external and internal strife. For example, it has been facing the problems of terrorism both within the nation as well as from other neighbouring nations. India possesses huge quantities of natural resources and also has favourable climate to grow an array of crops. But political and administrative corruption appear to be one of the major obstacles for India’s growth though the social and economic policies work in writing. For instance, the mixed economic system right after independence and also the present market oriented policies are suitable for India’s domestic economic and social conditions.

Insufficient proper technology, scarce natural resources, ineffective economic and social policies, high growth rates of population, low quality of recruiting, depressing infrastructure quality, recurring natural calamities, very high cost manufacture of products or services thus low comparative and absolute advantage in a few products, reliance upon external resources, insufficient interest in their primary products within the international market, etc would delay the progress of nations.

Many African nations have been in the process of development with the the help of other nations. For instance, India helps a few of these nations in their social and economic development. China continues to be involved with infrastructure development in some African countries. Some of these countries frequently face the problem of diseases to the human resources and poor health care, which is responsible for low production and productivity levels. The majority of the population of these countries depends upon primary economic activities resulting in meager saving rates and investments that is accountable for low capital accumulation and economic growth.

Some countries of the world have been producing goods and services by utilizing obsolete methods. Such methods are responsible for low yields and therefore really low quality of life, life expectancy from the recruiting too. For example, in several parts of India, Pakistan, Bangladesh, Srilanka, etc farmers still rely on conventional methods of crop production. Bangladesh, Srilanka do loss wealth often because of recurrence of natural calamities such as floods. Some countries which are in the polar regions do not have favourable climate which has been retarding the progress of the civilisations.

Australia and other pacific nations have been facing threats from cyclones, floods. Similarly world’s third largest economy Japan would have been in a stronger position been with them learnt to predict the devastating calamities such as earthquakes. Thus natural calamities also may play a role to delay the development of economies.