The premise of this book is that the puzzles of economic development and post-communist transitions can be illuminated by a serious economic analysis of institutions. Economic performance is strongly dependent on the economic policies selected and on the manner in which these policies are implemented by government agencies. Performance also depends on property rights and contract enforcement mechanisms in the business community, and patterns of participation in community organizations. These and other institutional arrangements are analyzed in this book under the rubric of the New Institutional Economics. Christopher Clague brings together a distinguished group of economists and political scientists to address the determinants and consequences of international differences in economic and political institutions. After reviewing the intellectual landscape of the New Institutional Economics and other contributions, the authors present new evidence that international differences in property rights and contract enforcement help to explain differences in income, investment and growth.