One of the most fundamental questions in economic science is “why  are some countries richer than others”? Differences in the quality of legal, political and educational institutions between countries turns out to be an important part of the answer.
Indeed, the strengthening of such institutions often goes hand in hand with higher economic growth: countries with stronger institutions experience stronger economic growth compared to countries with weaker institutions. There are several reasons why this turns out to be the case. Strong institutions provide for the protection of property rights; foster contract enforcement; create a healthy investment climate and help the development of abilities.