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The first is to improve institutions.
"They weren't trying to reform and improve institutions; they were just trying to take them over and use them for their own purposes," Ragab said.
But the question of how to improve institutions in places suffering from dire poverty and relative isolation (see also Mr Easterly's charts on airline routes and internet connexions), is a very difficult one to answer indeed.
This crisis, given its scope, presents a unique opening to improve institutions, and there is already a danger that the chance might be missed if the different actors cannot agree to changes by the time economic growth resumes, Mr. de Larosière said during an interview at the headquarters of the French bank BNP Paribas, where he is an adviser.
People must cast votes to improve institutions and elected people must work to solve social problems.
Significant pressure exists for donors and international agencies to use this opportunity to improve institutions, rather than simply refurbish the old ones [ 6].
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But implementing reforms, especially those aimed at improving institutions and alleviating poverty, often involves taking on powerful interests.
Papp invented an institution in his own image; Eustis has devoted most of his professional life to improving institutions created by others.
"Later, this economic growth itself improves institutions and technology, making contracts easier to monitor and enforce, so that a culture of honesty is no longer necessary for further growth".
If improving institutions lowers the fertilizer distribution costs, as in Scenario 5, then the income of all production factors will increase.
Philanthropy is really investing, making a difference, improving institutions that exist, and creating ones that are needed that do not exist.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com