The issue of institutional development has come to prominence during the last decade or so. During this period, even the IMF and the World Bank, which used to treat institutions as mere ‘details’, have come to emphasize their role in economic development. However, there are still some important knowledge gaps that need to be filled before we can say that we have a good grip on the issue of institutions and economic development, both theoretically and at the policy level. This book constitutes an attempt to fill these gaps.