The Importance of Institutions

I think we cannot discuss what is an ideal set of institutions without taking into account people's behavior. For example, if you assume that human beings are incorruptible, you may be able to produce a system which has a huge amount of scope for corruption but which people don't take. And the world has often gone that way. Even some of the problems that visited the socialist countries was connected with that because we will expect that the level of dedicated work for the state institutions didn't obtain.