The Open Society, Institutions and Economic Performance

Development and economic prosperity illustrates undoubtedly nodal objectives of every nation worldwide. Economic freedom and democracy are the proper way to achieve such performances in an open society but in conditions of risk, high uncertainty and information asymmetry. In such terms, the laissez-faire policy requires institutional support in order to facilitate social relations integrity, honesty between economic agents, the rule of law and a stable and efficient economic climate able to generate trust and development. The purpose of this paper is to highlight the major contribution of institutions to the economic performance of a free society where life is guided by “the invisible hand” of the market and spontaneous discipline in order to emphasize that order might be compatible with freedom but also with the idea of economic progress.