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Inclusive economic institutions support innovation and growth from "summary" of Why Nations Fail by Daron Acemoglu,James A. Robinson
Economic institutions play a crucial role in shaping a nation's ability to innovate and grow. Inclusive economic institutions, which provide a level playing field for all individuals and allow them to fully participate in economic activities, create an environment that encourages innovation and fosters economic growth. Such institutions promote competition, reward hard work and innovation, and protect property rights, which are essential for individuals to invest in new ideas and technologies without fear of expropriation. Inclusive economic institutions also promote the efficient allocation of resources by ensuring that individuals are able to pursue their own interests and make decisions based on market signals rather than political influence. This allows resources to flow to their most productive uses, leading to higher productivity and economic growth in the long run. In contrast, extractive economic institutions, which concentrate power and wealth in the hands of a few elites, stifle innovation and hin...
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