Assignment 2 Institutions have been ubiquitous in the human experience, since the first civilizations. From simple councils of wise men in prehistory, to the deep rooted bureaucracy of the American executive, they have been indispensable in the carrying out of everyday life. Unger and Johnson both stress the importance of institutions- Unger because they can be used as tools to enhance democracy in markets, politics and empower individuals- Knight/Johnson because they should prioritize democracy and enable reflection on institutional arrangements. Institutions although resistant to change and liable to maintain outdated forms, must looked at critically and modified; the difficulty in doing this creates and sustains poverty in Rochester.
Institutions are structures within a community governing recurring patterns of behavior, they are above individual intentions and mediate rules that govern living behavior. In the context of Unger and Knight/Johnson, they are the private and public organization/policy/mindset that results in democracy, economic gain and equality being attainable to people and nations. Unger clearly thinks that these institutions have been corrupted and the vast majority of the world is in a “dictatorship of no alternatives”, where there is miniscule hope for people to practice democracy and climb out of poverty, as a result of poor institutions. Unger believes the problem is near universal and deep rooted, from the way the Left has been disoriented in the second half of the 20th century to the failings of globalization and equitable entrepreneurship. Markets are institutions that exist in all forms of communities. …show more content…
Ranging from simple trades to the global financial industry. It's not up for debate whether control economies’ markets are institutions, however free markets are also institutions. The coordination and network of various independent agents, working together, in a repeated way to fill a demand is an institution (Lindbloom 35). Systems that are a combination of the two or free markets within control economies are also institutions (Lindblom 4). Organizations and markets are embedded in an institutional framework and overlap, giving birth to a hybrid form. No market exist as purely a control economy or like Smith’s laissez faire. These market institutions are also determinant in the formation of new businesses, for example the form of business which institutions are most likely to fund will be a popular form of start up. This creates a situation where market institutions support specific types of business firms. For example the legal institutions for classifying businesses creates strong incentives for small partnerships/sole proprietorships to maintain control. The same institution also encourages larger companies to be LLCs and corporations for more longevity, limited liability and capital raising purposes. These forms of businesses put the share of profits in relatively few hands and create dictatorships in the workplace. This workplace institution that is formed by the legal and financial institutions, results in imbalances of wealth, political power and opportunity. Unger calls to practice “institutional imagination”, a combination of political economy and legal analysis, where thinkers try to walk the path between surrender to intellectual authority and “unchallenged, self-congratulating heresy”(Unger 22). The institutional imagination must identify the shaping causes of institutions and beliefs, while simultaneously leaving the door open to replace and dismember them (Unger 23). This runs parallel to pragmatism and its implications for institutional analysis. Pragmatism embrace fallibilism, beliefs and institutions that are held confidently presently may turn out false and confused and if a reason to doubt them arises, one must act on it (Johnson 49). Both of these viewpoints goal is the same, to expand democracy and political power for people that are lacking it, this striving for improvement of institutions and the status quo, is critical to maintain a strong commitment to democratic institutional arrangements. Dewey discusses the threat to democracy that occurred over the lifespan of this country. How whole groups of people are losing power and opportunity. The rights that Americans fought for in the 18th century are under threat from within. The thought and at of democracy is a personal way of individual life (Dewey 229). He talks about how the transition from subjects of the British crown to free men in a new nation rested on a group of men capable of readapting older institutions and ideas to meet new situations. This could
Institutions are structures within a community governing recurring patterns of behavior, they are above individual intentions and mediate rules that govern living behavior. In the context of Unger and Knight/Johnson, they are the private and public organization/policy/mindset that results in democracy, economic gain and equality being attainable to people and nations. Unger clearly thinks that these institutions have been corrupted and the vast majority of the world is in a “dictatorship of no alternatives”, where there is miniscule hope for people to practice democracy and climb out of poverty, as a result of poor institutions. Unger believes the problem is near universal and deep rooted, from the way the Left has been disoriented in the second half of the 20th century to the failings of globalization and equitable entrepreneurship. Markets are institutions that exist in all forms of communities. …show more content…
Ranging from simple trades to the global financial industry. It's not up for debate whether control economies’ markets are institutions, however free markets are also institutions. The coordination and network of various independent agents, working together, in a repeated way to fill a demand is an institution (Lindbloom 35). Systems that are a combination of the two or free markets within control economies are also institutions (Lindblom 4). Organizations and markets are embedded in an institutional framework and overlap, giving birth to a hybrid form. No market exist as purely a control economy or like Smith’s laissez faire. These market institutions are also determinant in the formation of new businesses, for example the form of business which institutions are most likely to fund will be a popular form of start up. This creates a situation where market institutions support specific types of business firms. For example the legal institutions for classifying businesses creates strong incentives for small partnerships/sole proprietorships to maintain control. The same institution also encourages larger companies to be LLCs and corporations for more longevity, limited liability and capital raising purposes. These forms of businesses put the share of profits in relatively few hands and create dictatorships in the workplace. This workplace institution that is formed by the legal and financial institutions, results in imbalances of wealth, political power and opportunity. Unger calls to practice “institutional imagination”, a combination of political economy and legal analysis, where thinkers try to walk the path between surrender to intellectual authority and “unchallenged, self-congratulating heresy”(Unger 22). The institutional imagination must identify the shaping causes of institutions and beliefs, while simultaneously leaving the door open to replace and dismember them (Unger 23). This runs parallel to pragmatism and its implications for institutional analysis. Pragmatism embrace fallibilism, beliefs and institutions that are held confidently presently may turn out false and confused and if a reason to doubt them arises, one must act on it (Johnson 49). Both of these viewpoints goal is the same, to expand democracy and political power for people that are lacking it, this striving for improvement of institutions and the status quo, is critical to maintain a strong commitment to democratic institutional arrangements. Dewey discusses the threat to democracy that occurred over the lifespan of this country. How whole groups of people are losing power and opportunity. The rights that Americans fought for in the 18th century are under threat from within. The thought and at of democracy is a personal way of individual life (Dewey 229). He talks about how the transition from subjects of the British crown to free men in a new nation rested on a group of men capable of readapting older institutions and ideas to meet new situations. This could