MECHANISMS OF GOVERNANCE OF SUSTAINBLE DEVELOPMENT

Abstract

In this paper we incorporate the interdisciplinary New Institutional and Transaction Costs Economics (combining Economics, Organization, Law, Sociology, Behavioural and Political Sciences), and suggest a framework for analyzing the mechanisms of governance of sustainable development. Our new approach takes into account the role of specific institutional environment; and the behavioural characteristics of individual agents (personal preferences, bounded rationality, tendency for opportunism, trust, risk aversion); and the transaction costs associated with the various forms of governance; and the critical factors of economic activity and exchanges (such as appropriability, frequency, uncertainty, and asset specificity of transactions); and the comparative efficiency of market, private, public and hybrid modes; and the potential of production structures for adaptation; and the comparative efficiency of alternative modes for public intervention. Agricultural sector is used to illustrate that new approach and support with examples.institutions, market, private, public and hybrid modes, agrarian sustainability