If institutional economics is little known to the general public, it is because the building of progress-enhancing institutions is a difficult task. Any economist can show that free trade leads to cheaper and more varied goods, but there is no blueprint for “building” a society that respects the rule of law. That vital ingredient, including an impartial judiciary and respect for property rights, does not emerge from edicts promulgated by democratically elected parliaments and enforced by politicians, policemen and judges. It emerges slowly and incrementally from shifts in cultural norms and popular expectations.
Recovering from Soviet communism was hard enough for Slovakia and other former Soviet vassals--even with the active help from Western democracies since 1991 tp provide physical security and assistance in building the governmental and societal institutions for rule of law.
Imagine how much harder it is for Iraq--continually under assault by jihadis and Iran since the overthrow of Saddam--and why an Arab Spring is a long-term project that will span many generations even with outside help.
