Relationship between Underdevelopment and Established Organizations in a Country

The aim of this study was to investigate the role of established organizations, that is, the institutional structure, in combating poverty. Institutions are the rules of the game in society and constitute human-made constraints. Institutions and institutional mechanisms play the role of complementing the missing elements in an economy. In this context, one of the most important issues of development economics for governments and policymakers is to ensure socioeconomic improvement, in other words, to reduce poverty and extreme deprivation. Methodologically, the study first reviewed the existing literature, then evaluated the relationship between poverty and institutions, and finally discussed how poverty can be measured. From this perspective, poverty is a phenomenon that may result from political processes, while institutions can emerge as formations that directly or indirectly influence the reality of poverty through politics. Since institutional quality determines political quality, the institutional structure shapes the political system and can affect the emergence of poverty. In this context, institutional infrastructure and public administrations are crucial factors in the fight against poverty and underdevelopment.