Promoting inclusiveness

The third barrier to coordination mentioned in the previous section is fundamental enough to deserve expanded discussion. While it is well recognized that the quality of institutions affects the management of assets, it is less well recognized that the distribution of assets and voice affects the evolution of institutions in the long term (see figure 3, roadmap). Poorly distributed assets can affect adversely the quality of institutions and their ability to solve problems. Because of this reciprocal relationship between institutions and the distribution of assets one can get locked into vicious or virtuous circles. These circles are not deterministic, but extra effort is needed to break out of a vicious circle. This is easier when greater inclusiveness in access to assets is assured from new additions to the asset base, such as with broad investment in primary education.