Reliability is the single most important aspect of a successful economy. This firstly originates from within the worldview of the population and secondly from the actions of the government.
In order for advanced financial products such as derivatives to exist, there must be a reliable trading market whose operational mechanisms are fully predictable. In order for a trading market to exist there must be reliable banking and transaction systems in operation. In order for banking and transaction systems to exist there must be a reliable rule of law that provides severe consequences for transaction and banking fraud or theft. In order for a reliable rule of law to exist there must be a cultural and social desire to maintain a reliable rule of law, and there must be reliable sets of rules by which the enforcers abide. It’s this last one that largely determines the strength of an economy.
The cultural and social desire to maintain a reliable rule of law. I think you could look at this in terms of Game Theory, with the culture determining how a member of its population interprets the goal of “maximizing his returns”. This is a touchy subject, since its logical extent lays the blame for economic failings at the feet of the cultural beliefs of the population(s) effected; and since any critique of one’s culture tends to be a very personal criticism, tempers typically begin to flare.
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