Historical Accidents in Institutional Evolution
How Economics, Governance, and Technology Developed by Chance Rather Than Design Abstract: Modern systems in banking, governance, and technology are often perceived as deliberate creations of rational planning. In reality, most emerged through historical accidents, political compromises, and path-dependent developments. This essay explores how major institutions such as fractional-reserve banking, central banking, corporate law, and digital standards evolved not from design but from contingency. Drawing from historical institutionalism and evolutionary economics, it highlights the forces of path dependence, lock-in, and critical junctures that shape enduring global systems. Introduction: Institutions as Accidents of History When we observe systems such as global banking, corporate law, and internet protocols, it is tempting to assume they are the product of coherent design. However, scholars of historical institutionalism argue that many lasting institutions are accidents of...