How important are institutions for the development of nations? Are there any existing measures which quantify the behavior of institutions? Is there any theoretical justification for measuring their behavior? This paper introduces a framework influenced by Plato’s needs theory to provide justification for measuring the behavior of institutions. This involves introducing the humanization hypothesis which states that the behavior of institutions can be measured as they, similar to human beings, are living entities with similar hierarchical needs which are essential for their survival. The paper employs an explanatory and descriptive research design which is highly theoretical in nature.