Role of Economist and Indigenous Institutions

Abstract

This paper provides a reconsideration of the role of the economist in economic growth. The paper argued that economists and policy makers alike overlook the role indigenous institutions play in economic development. The paper argues that informal institutions, which underlie formal institutions, cannot be imposed from above but must develop from the ground up. Imposing formal institutions that do not align with the underlying institutions will not be effective. The paper’s reconsideration of the role of the economist in economic growth, concluded that there is a significant role for the economist to play, that of understanding the interplay of both formal and informal institutions and their impact on economic activity. In addition, the paper posits that economist can serve a critical function as an educator and advisor to both the general public and policy makers. In this capacity, the economist plays an important role in shaping public opinion and ideology which is critical in achieving long-lasting institutional and social change.