The Glorious Revolution in Britain weakened extractive institutions from "summary" of Why Nations Fail by Daron Acemoglu,James A. Robinson
The Glorious Revolution in Britain, which took place in 1688, played a pivotal role in reshaping the country's political and economic institutions. Prior to the revolution, Britain was characterized by extractive institutions that concentrated power and wealth in the hands of a few elites. The Glorious Revolution, however, weakened these extractive institutions by transferring power from the monarchy to Parliament.
This shift in power had profound implications for the distribution of resources in Britain. With the monarchy's power reduced, Parliament was able to pass laws that protected property rights and limited the ability of elites to extract wealth from the rest of society. This laid the foundation for a more inclusive economic system that allowed for greater economic growth and prosperity for a larger segment of the population.
By weakening extractive institutions, the Glorious Revolution also paved the way for the Industrial Revolution in Britain. The establishment of more inclusive institutions created a fertile environment for innovation and entrepreneurship, leading to rapid advancements in technology and industry. This in turn fueled economic growth and laid the groundwork for Britain's emergence as a global economic powerhouse.
The Glorious Revolution in Britain serves as a powerful example of how political changes can have far-reaching economic consequences. By shifting power from extractive institutions to more inclusive ones, the revolution set the stage for sustained economic development and prosperity. This demonstrates the importance of institutions in shaping the economic trajectory of a nation and highlights the potential benefits of moving towards more inclusive political systems.
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