Analyse Asia With Bernard Leong

"The way that institutions emerge and entrench themselves and become a part of the functioning of an economy and society is because they solve some problems. So they're usually a non-market solution toward solving some problem that the economy, that the market system couldn't necessarily solve. Of course the most prominent example of an institution that solves an. Market problem in the non-market way is a firm, as Ronald Coase, of course very early on, taught us that. When a firm realizes that in some cases when transactions costs are high, you want to internalize things within the firm. That the firm is itself an institution. But these other social political institutions, they also exist to resolve some problem. And once they resolve that problem and they're resolving it adequately, then it becomes really hard to bring about change. So the institution solves a problem. So to be clear, it is better than in the absence of the institution, but it also means that without somehow breaking this institution or havi