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Since DC North’s seminal work on the development of capitalism in Europe, researchers have increasingly recognized the fundamental role that market institutions play in economic growth. 1 In particular, North argued that individual property rights need to be protected from theft and embezzlement, as well as from arbitrary expropriation by agents of the state. 2 In addition, institutions such as lawyers and courts that ensure compliance with contractual obligations and deter opportunistic breach of contract must exist. 3 These ideas have largely shaped the research and policy agendas for transition economies and developing countries alike. 4 They have also spawned new and insightful research on the various forms that market institutions have taken over the course of human history. 5 This article studies whether institutions exist in present-day Madagascar that protect property rights and ensure contract compliance …