1. Introduction: market, state, and economic development -- Pt. I. Policy Reform, Institutions, and Economic Performance. 2. The Washington Consensus and its limits. 3. From New Political Economy to New Institutional Economics. 4. Institutional change and economic performance -- Pt. II. Governance: Theory and Practice. 5. Governance and economic performance: conceptual considerations. 6. Governance in practice: evidence from less developed countries and economies in transition. 7. Rethinking effective governance: politico-institutional structures and economic development in comparative perspective