Institutions

Prior to the journey to Italy, our group of 13 students met and began article presentations. Connor and I read and presented on an article called Institutions by Nobel Prize winner Douglass C. North. Although we are not in Italy and have not seen any sites with which we can relate the article to, the topic of institutions is and will be extremely prevalent in our travels in Italy. The article explains the evolution of economies based on the smaller aspect of institutions. Institutions are the humanly devised constraints that structure political, economic, and social interactions. They consist of informal constraints like taboos, customs, traditions, sanctions, and codes of conduct; and formal rules like constitutions, laws, and property rights. North explains the evolution of economies from a local exchange in hunting and gathering societies  to a global network of trade like we see today in Western societies. In local exchange economies, success in trade relies on interpersonal skills. In more developed, global economies, trade is much more impersonal.

It is important to know of the local institutions when traveling. As mentioned in the article, institutions can support or constrain market evolution, but they can also support or constrain the ease of traveling and navigating in a foreign culture. One institution mentioned in class was the custom of "tipping" at a restaurant. Different cultures have different tipping expectations and if travelers are not familiar with these expectations, the probability of offending someone increases and the success of the interaction decreases. Beside a lack of knowledge of informal constraints, reading this article made me realize how little I know of the formal rules in Italy. What if I unknowingly do something against the law? Yikes!

Institutions are at the heart of all interactions. I am going to do my best to stay aware of how the locals behave so I can attempt to do the same and make the most out of this Italian viaggio (trip). Wish us luck and pray we do not cause too much trouble with our lack of knowledge of Italian institutions. Ciao per ora! (Bye for now!)