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Extractive political institutions enrich the few at the expense of the many from "summary" of Why Nations Fail by Daron Acemoglu,James A. Robinson
In societies with extractive political institutions, power is concentrated in the hands of a narrow elite who use their control to extract resources from the rest of the population. This extraction can take many forms, from outright theft to predatory taxation and corruption. The result is that the elite become rich at the expense of the majority of people who are left impoverished. This process of extraction creates a vicious cycle where the elite use their wealth and power to entrench their control over the political system, making it even harder for the rest of the population to challenge their dominance. This leads to a further concentration of resources in the hands of the few, exacerbating the inequalities in society. The consequences of this system are far-reaching. Not only does it lead to widespread poverty and suffering among the majority of the population, but it also stifles economic growth and innovation. When a small elite controls access to resources and opportunities, talented individuals from poorer backgrounds are unable to rise to their full potential, limiting the overall development of society. Moreover, extractive political institutions create a culture of fear and mistrust, where people are afraid to speak out against the powerful for fear of retribution. This lack of accountability and transparency further entrenches the power of the elite and perpetuates the cycle of extraction. In contrast, inclusive political institutions create a more level playing field where power is more evenly distributed and resources are more equally shared. This not only leads to greater prosperity for the majority of the population but also fosters a culture of innovation, entrepreneurship, and social mobility.- The difference between extractive and inclusive political institutions lies in who benefits from the system. In extractive societies, the few enrich themselves at the expense of the many, leading to widespread poverty and stagnation. Inclusive societies, on the other hand, create opportunities for all individuals to thrive, leading to greater prosperity and progress for society as a whole.
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