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Institutional Failure

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Part of the book series: Political Economy of Islam ((PEoI))

Abstract

In the last 200 years, Iran has been suffering from what Akhavi (1998: 696) calls “the paradox of institutionalization failure”. The evolutionary theorization of institutions demonstrates that institutions emerge, they are not designed (Popper 1961). They are the products of evolutionary process of chaotic synchronization and not the products of intelligent design. Even when there is an element of conscious design involved in their construction, the consciousness itself is the emergent product of the cultural evolution of the regimes of truth alongside the fact that the interaction between the conscious and unconscious decisions and actions of multiple agents give rise to the emergence of institutions (as such institutions are embedded, incommensurable, and emergent phenomena). North (1990, 2005) attests that institutions make life predictable and stable as they establish the rules of the game in different realms of work, life, and language. Institutions such as constitution, money, language, market, court, family, state, and church—as Hayek (1988) alongside Sugden (1989) and Heiner (1989) theorizes them—are the spontaneous and unintended products of cultural evolutionary processes. In effect, in the context of development, we face two types of institutional changes in the social order, the engineered ones versus the evolutionary ones. Pioneering countries and peoples benefit from the first-mover advantage and sleepwalk into the new institutions through the evolutionary process of blind watchmaking via the work of “vanishing mediators” (Jameson 1988: 25) or “piecemeal tinkering” (Popper 1961: 61), while the belated societies are forced to build the new institutions required to fill the development gap through intelligent design (largely through a ‘copy-paste’ process from the pioneering nations).

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Notes

  1. 1.

    It is worth noting that Salehi-Isfahani (2018) questions the logic behind Nili’s calculation and offers significantly different evaluation of his own.

  2. 2.

    See Latour (1987), Zafirovski (2000), Roth (2007) and Shaikh (2016) on this important point, see also Connolly (2011: 37) and his critique of the notion of externality in economics; see also Dodd 2014.

  3. 3.

    For a much less contextually theorized but similar notion, see the use of the notion of ‘symbolic interactionism’ in Dabashi (2010: 209–10).

  4. 4.

    The extensive discussions on the failure in building other institutions (such as constitution, polity, banking system, legal system, and education) could not be incorporated in this work due to word limitations.

  5. 5.

    For Shia Islam, see Tabatabai (1979), Sobhani (2001), Jafarian (2009), Niazmand (2004), Thurfjell (2006), Dabashi (2011), Ridgeon (2012), Mavani (2013), Hughes (2013), and Arjomand (2016), among others.

  6. 6.

    The move from Qanat (networks of underground channels collecting, preserving and controlling water for consumption and agriculture) as a traditional method of controlling water and irrigation emerged through an evolutionary process of chaotic synchronization to building modern dams is another example of social engineering without vanishing mediators with catastrophic consequences. As Latour (1987, cited in Luckhurst 2008: 24) maintains, “To describe a machine … is not just a technical matter: it is also to describe the social relations that are bound into it.” In the context of belated inbetweenness, the whole of social life is littered with examples of projects of reverse social engineering (see Ostrom and Basurto 2011: 321, on the unintended consequences of the social engineering of irrigation systems).

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Gohardani, F., Tizro, Z. (2019). Institutional Failure. In: The Political Economy of Iran. Political Economy of Islam. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-10638-6_6

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