Institutional Design refers to the process of creating and organizing institutions—rules, structures, and practices—that govern social, political, and economic interactions. It aims to establish frameworks that promote efficiency, fairness, and stability within societies. Effective institutional design considers the needs and behaviors of individuals and groups, ensuring that institutions function as intended. Key elements of institutional design include governance structures, incentives, and accountability mechanisms. These components help shape how decisions are made and how resources are allocated. By carefully crafting these elements, societies can address challenges, reduce conflicts, and enhance cooperation among various stakeholders.