The term national development refers to the circumstance that it can be said that a given nation has improved its standard as a consequence of an improvement in the economy . Every nation wants to achieve an evolutionin the way of life of its members and from this perspective, it wants to achieve a degree of growth in its development. For this, they establish policies that favor a group of the population and achieve improvements that are sustainable. However, when the market has circumstances that only in the public sphere, it needs strong and reliable institutions to improve the population’s living conditions. This set of regulations, policies and public goods that guarantee an adequate context for the economy to develop for convenient and sustainable causes is called institutional quality.
For a nation and all its inhabitants to enjoy a good quality of life , it is necessary for the economy to produce an appropriate amount of goods and services and this circumstance spreads to everyone. This kind of circumstance can only stabilize a market economy that guarantees freedom over mercantile activity. This type of policy allows for the need to generate business and the possibility of insuring the goods and services that protect it. That is why the theory disseminated in the academic field refers to an efficiency in the market. These ensure the full satisfaction of needs with small expenditure of possible resources. Thus, national development is strongly consolidated.
However, this stance is not fully accepted and there are those who take great account of the role that the State should play. Thus, the need to guarantee an adequate distribution of resources can only be guaranteed by a state that has as its objective that any citizen is left without the minimum of needs to be covered. However, in addition to the attractions that this type of posture may have, what is certain is that an intervention in the economy can be harmful many times and lead to more problems than they try to solve. Such circumstances can happen for the simple fact that a plan that tries to centralize some economic decisions can fail due to the impossibility of processing all the information issued by the market, so that errors do not take long to appear, as well as problems.