institutions and development

Institutions are the established systems, rules, and organizations—like governments, courts, and banks—that shape how a society functions. They provide stability, security, and predictability, enabling economic activity and cooperation. Development refers to the progress a country makes in areas such as health, education, income, and infrastructure, improving people's quality of life. Strong institutions support development by creating conditions that attract investment, ensure justice, and promote good governance. Conversely, fragile or corrupt institutions can hinder progress. Overall, effective institutions are essential for sustainable development and a prosperous society.