The Limits of Institutional Design Francis Fukuyama Johns Hopkins School of Advanced International Studies
Presidential/PM v. Electoral Systems Plurality Presidential Parliamentary US, Philippines Westminster PR Latin America Continental Europe
Expected Decision Costs Participation v. speed of decision-making (Buchanan and Tullock) Percentage of population required to make decision
Types of veto gates • Electoral system – PR/plurality, district size, thresholds, timing • Party discipline – Open v. closed list PR, campaign finance • Bicameralism • Federalism and decentralization • Independent Judiciaries
System Rankings • • • Classic Westminster Parliamentary/PR with strong parties Premier-presidential Presidential with plurality voting Parliamentary with fragmented parties Presidential with fragmented parties
British Election Results, 2001
Successful Institutional Reform • Electoral systems – Chile 1988, Japan 1994, Italy 1994, New Zealand 1996, Thailand 1997 • Federalism – Brazil, Fiscal Responsibility Law (2000)
Conclusions • No such thing as an optimal political system • Institutions come in complex, interdependent packages • Good institutions heavily dependent on local context and traditions • Need to invest in local knowledge of institutions • Leadership matters • Formal institutions matter less than many think