Abstract

Can institutions orient the emergence of new needs, and, through their action, orient the economic system so as to meet such needs? In order to answer this question, the essay proposes a theoretical framework grounded on two elements: the notion of institutions as different types of entities organised around different systems of rules, and the notion of needs as the expression of awareness of what people consider important to build new life plans. The emergence of such awareness is linked to knowledge-generating processes. The resulting policy implications focus on the idea that social policies should follow two complementary directions: contributing to build the minimum conditions to design life plans, and widening the possibilities of active participation in knowledge-generating processes.