Over the past three decades, however, another explanation has gained prominence: countries prosper because they build institutions that earn people’s trust. Nobel laureate Douglass North argued that good institutions reduce uncertainty.
"I do hope Finance Minister Chidambaram will one day say, 'I am often frustrated by the Reserve Bank, so frustrated that I want to go for a walk, even if I have to walk alone. But thank God, the Reserve Bank exists.'"
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