Nevarro Sees Economic Growth (Star Wars – The Mandalorian)

In season 1 of The Mandalorian, we see Nevarro, a barren planet with crumbling institutions; however, in Season 2 after Mando, Cara, and Grief retake the planet and establish institutions, Navarro is unrecognizable. There are multiple changes implemented to the planet that allow for economic growth – this is representative of less developed countries that experience economic growth. According to Nobel Prize-winning economist, Douglass North, “Institutions are the rules of the game in a society or, more formally, are the humanly devised constraints that shape human interaction”… essentially they are a set of constraints that impact human incentives. Examples of institutions seen in the clip that are imperative for economic growth revolve around property rights, legal systems, and political systems. Property rights determine how resources can be owned by individuals or organizations and help encourage entrepreneurship, or taking on additional risk to start a business. Without property rights, there is no incentive to collect or develop capital without the security of knowing that it cannot be taken away by other individuals or governments. Without the institutions of legal systems and the enforcement of laws, such as courts and police who maintain the peace in a society, there will be a lot of crime that goes unpunished; lacking legal systems is a disincentive to not steal from others and causes a lot of dangerous scenarios that do not allow for proper economic growth. Lastly, having the institution of a good political system with checks and balances, a form of government with multiple groups that make decisions is important in not allowing for a single individual to come to power. This could be multiple branches of government or two individuals such as Cara and Greef, who have slightly different views on how to reach the same objective. Without these property rights present, Nevarro would not be a developed society that includes Mando asking for credit on his ship repairs, a street full of businesses, or a school to increase education for its citizens.

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