The Glorious Revolution, Economic Institutions and the Developing World
Abstract
This paper critically examines the relative merits of New Institutional Economics
(NIE, hereafter) versus the critical institutionalist method of institutional analysis. The paper
sketches how the Glorious Revolution, a seminal event in British economic and political
history, has been analyzed by NIE. Using material from both economics and political science,
this paper argues that the NIE analysis, in general, and that of the Glorious Revolution, in
particular, shows a considerable amount of theoretical weakness. Instead, the paper forwards
the critical institutionalist method to present a comprehensive institutional analysis of the
Glorious Revolution. The paper also underscores the changing nature of resource distribution
and culture in Britain as key variables. Finally, the paper also highlights the role of the
“Whigs” as key agents in bringing about the events associated with the Glorious Revolution.