Institutional Reform is the Key to Lasting Progress

As we enter the second quarter of the 21st century, we witness unprecedented transformation. Yet, we (the Kukis) continue to be governed by institutions and organizations designed for a world that no longer exists or that have become extractive. These institutions, once meant to guide and structure our collective life, have now lost grip of the realities they were meant to shape, making institutional change a pressing necessity. Reforming both our traditional and newly established institutions to align with contemporary needs is crucial for sustainable growth, progress, and development.

To begin with, we must recognize that the solutions of yesterday or even today, however good, may not address the challenges of tomorrow. Moreover, blind repetition of these outdated norms, rules, and practices, or worse, authoritarian insistence on preserving them, can be deeply detrimental in a world of drastic change.

Beyond the common knowledge, the importance of institutions as a growth-generating mechanism is highlighted by the Nobel Laureates Daron Acemoglu and James A. Robinson in Why Nations Fail: The Origins of Power, Prosperity, and Poverty (2012), where they argue convincingly that the success or failure of nations lies primarily in (the nature of) their institutions and not in their geography, culture, or ignorance of sound policy.

They further categorized institutions into two types: inclusive and extractive institutions.

Inclusive institutions are built on democratic principles, the rule of law, and pluralism. They establish checks and balances that prevent the concentration of power, ensure property rights, encourage investment, and promote innovation. Such institutions create a level playing field and foster broad participation in all spheres of life; as such, they are the origin of power and prosperity.

In contrast, extractive institutions centralize power and wealth in the hands of a few. These structures are mostly authoritarian in nature, suppress innovation, lack transparency and accountability, and obstruct public participation. As a result, instead of becoming a growth-generating mechanism, they stifle development by serving only elite interests at the expense of the broader society.

If we examine the dominant institutions that govern our society today, we will find (and perhaps agree) that many of them are outdated or are extractive in nature. This is why Mang Taithul once referred to this as the “Trinity of Evil,” referring to ‘bureaucrats, thingnois, and politicians,’ and Dr. Lamtinthang Haokip expanded this to a “Quartet of Evil” by including the ‘haosa (chieftainship)’ institution. To this, I would add our “gendered institutions,” thus identifying it as the “Pentarchy of Evil.”

The current notion is that these institutions and actors may have once provided us stability, security, and progress, but they now fall short of upholding the core values of justice, equality, and fairness. They are said to operate with authoritarian tendencies and regulate both public thinking and behavior, often sidelining democratic engagement. And the nexus among them has created a closed system that protects elite privilege and chokes meritocracy, lacks accountability, supress innovation, and hinder collective advancement. Therefore, if we want to prosper and become powerful, which we well do, it is time to initiate a shift from extractive to inclusive institutional arrangements.

Such fundamental change, though it sounds unsettling, is not only necessary but also possible. Let us consider our religious transformation: although we now identify as a Judeo-Christian community, we all know that our forefathers once resisted Christianity, even excommunicating early believers. Yet over time, the church reshaped our society so profoundly that pre-Christian rituals are now mere cultural relics and even anathema to some. Today, the church stands as the most mature, stable, and professionally managed institution. This transformation teaches us profound change is possible and that the earlier we change, the better.

However, in calling for radical reform, we must be cautious ‘not to carelessly denigrate the institutions and leaders that once served us,’ as Dr. Jordan Peterson wisely notes in his thought-provoking book ‘Beyond Order: 12 More Rules for Life’ (2021). Our institutions, though imperfect, deserve our gratitude and respect for the stability and progress they helped establish in the past. But at this juncture, it is critical that we realize our social responsibility to repair our institutions when they falter and resist blind conformity when they become corrupt or pathological. This reform must begin not with denial and reckless anger, but through thoughtful and informed engagement with existing structures.

If our forefathers could see us today, I believe they would rebuke us not for changing their institutions but for clinging to them uncritically, as if they were eternal truths rather than tools designed for a different era. I believe they would want us to transform our institutions to meet the needs of our time so that we may reclaim the strength and glory we often associate with our past.

(Views expressed are personal)