The big idea: Money alone does not develop a country — how it is governed does. Political and institutional factors decide whether resources become schools and roads, or vanish into corruption. Good institutions turn money into development; weak ones waste it.
The key factors are stability (peace and predictable rule), accountability and transparency (leaders answerable, decisions open), low corruption, and the rule of law — plus the everyday effectiveness of institutions like tax offices, courts and the civil service.
- Stability — peace and predictable government; conflict and chaos destroy development.
- Accountability & transparency — leaders answerable to the people; decisions open, not secret.
- Corruption — corruption drains resources meant for development.
- Effective institutions & rule of law — fair courts, working tax and services, and laws applied to all.
Why institutions are decisive: Two countries can have the same resources and aid, yet one develops and the other does not — because institutions decide whether the money is invested honestly or stolen. This is why many argue development depends on good governance above all.
Free preview
This is the free notes preview
You're reading the free notes. Aimnova Pro unlocks the full study experience — and you can try it with your first topic free to keep:
- FlashcardsLock in vocabulary and key terms with spaced repetition.
- Practice questionsAnswer exam-style questions and get instant AI marking.
- Mock exams & past-paper vaultSit full mocks and see exactly how examiners award marks.
- Personalised study planA daily plan built around your exam date and weak areas.
The clearest way to see this is corruption — where weak institutions let development resources be stolen rather than spent on people.
Case study — corruption and weak institutions: When institutions are weak, corruption can drain development. A country with real resources and outside help still fails to develop — its people stay poor while a few grow rich.
How corruption drains development
- Money for roads, schools and hospitals is siphoned off by officials
- Contracts go to the well-connected rather than the best
- Aid props up leaders instead of reaching people
What stops it: strong, accountable institutions
- A free press
- Honest courts
- Working tax offices
- Together they turn money into development
So political and institutional factors are the hinge of development. They explain why the same economic inputs produce very different results — and why building good governance is often the hardest but most important task.
The key point: Political and institutional factors — stability, accountability, low corruption and effective institutions — decide whether resources develop a country or are wasted. Corruption shows the cost of weak institutions; good governance is what turns money into real development.
Practice with exam-style questions
Answer exam-style questions and get AI feedback that shows you exactly what examiners want to see in a full-marks response.
Are institutions and governance the essential factor in development — more than money or geography? A key recurring debate. Weigh it.
Why 'good governance' is central
Development studies increasingly stress institutions: accountable, low-corruption governments with the rule of law consistently develop better, because they invest resources honestly and attract investment — so governance is often the decisive variable.
Why governance is not the whole story
But governance alone cannot conjure resources: without money, infrastructure and access to markets, even honest institutions struggle, and outside forces (unfair trade, debt, colonial legacy) constrain what a state can do — so institutions are necessary but interact with economics and history.
Two perspectives — weigh them: One view: institutions and governance are the essential factor — they decide whether money develops a country. Another view: institutions interact with economics, geography and history, and cannot develop a country without resources. Strong essays evaluate both, often concluding good governance is the decisive multiplier but not a standalone cause.
How institutional factors come up in Paper 2: A Paper 2 essay might ask whether institutional or political factors are essential to development, or whether stability comes first. Weigh governance against economic and other factors, then judge (usually: the decisive multiplier, but not alone).
The 15-mark markband (what moves you up)
Bands 1–6
Mostly descriptive; perspectives not identified.
avoid
Bands 7–9
Clear knowledge, but perspectives identified, not explored.
7–9
Bands 10–12
Well-supported argument; perspectives explored.
10–12
Bands 13–15
Balanced, compelling; perspectives explored AND evaluated.
13–15
Discuss the view that institutional factors are essential to successful development.
Model answer plan
See the mark-by-mark plan — for / against / judgement, with marking guidance — in study mode.
Common mistakes: 1. Ignoring governance and only citing money. Institutions are the hinge.
2. No real case. Use corruption / a well-governed vs poorly-governed state.
3. Treating institutions as sufficient alone. They need resources too.
4. Listing institutional weaknesses. Weigh institutions against resources as the binding constraint.
5. No judgement. Conclude on how essential institutions are.