The Ideology Theory Of North's Thought Of Institutional Change

Douglass C. North a master of the New Institutional Economics, constructed a relatively complete system of institutional change, including the factors of property rights, state and ideology, and established his unique position in the history of the new economy. On the development course of his thinking, quotation of “ideology” undoubtedly constitutes a theory steering of the system analysis from the early pattern of “new classical rational analysis paradigm-institution-property rights, transaction cost” to late cognitive institutionalism, consisting important theoretical significance and role. So the study of this ideology theory must be set at a background of the whole idea of the institutional change. It is necessary to explain why North introduced ideology from the economics perspective and what is his ideology theory, and only by examining this ideology theory at a philosophy height, can we obtain a more comprehensive understanding. North's institutional change theory earlier inherited the concept, hard core the orthodox rational choice model, however, with the investigation of a large number of actual system, he gradually realized the limitations of static analysis framework of new classical economics in explaining the dynamic and long-term institutional change. In order to get rid of the previous theoretical dilemma and enhance self consistency of the institutional analysis, North changed his position and modified the assumption of the actor, forming a ideological theory which is related to the problem of institutional change closely. In this process, he defines the essential characteristics of ideology, explores the reasons for the change of ideology, and sets the criteria for the success of ideology, and highlights the cognitive function of ideology. At the same time, he answers the questions of why the invalid system can exist for a long time, why the introduction of advanced system can not promote economic growth and so on. As a subjective mental constructs, ideology plays an important role in the society, especially in the economic field. And also, it has become the key for North to explain the institutional change and the path dependence, even the lock-in effect in institutional change. From the early period of the “institutional-property rights” analysis which is under the influence of the new classical rational choice paradigm, to the later stage of the opening of the road about the congnitive institutionalism, North's institutional change theory is continuously evolving in. The introduction of ideological and theoretical construction urges the North's institutional view to change from constructivist rationalism to ecological rationalism. Based on the theory of individualism and the cognitive psychological level, his theory has some enlightening significance to the economic function of ideology and the realization of the path of these aspects, but it also has some obvious limitations and difficulties.