Audio available in app
Transforming extractive institutions into inclusive institutions is key to sustainable development from "summary" of Why Nations Fail by Daron Acemoglu,James A. Robinson
The fundamental idea put forth in 'Why Nations Fail' is that sustainable development hinges on the transformation of extractive institutions into inclusive ones. These institutions are the rules, norms, and practices that shape the incentives of individuals and organizations within a society. Extractive institutions concentrate power and wealth in the hands of a small elite, who use their control to extract resources from the rest of the population. This leads to stagnation, as the majority of people lack the ability to innovate, invest, or improve their circumstances. In contrast, inclusive institutions create a level playing field where individuals can succeed based on their talent and hard work, rather than their connections or wealth. Inclusive institutions provide secure property rights, encourage competition, and ensure equal access to education and opportunity. This fosters economic growth, innovation, and social mobility, leading to sustainable development over the long term. The key to sust...
Similar Posts
Social progress
The end of the war brought a new era of hope and optimism to the people of Europe. The belief that social progress would follow...
Free trade can harm developing countries
One of the most commonly held beliefs in the world of economics is that free trade is always beneficial for all countries invol...
Inclusive economic institutions support innovation and growth
Economic institutions play a crucial role in shaping a nation's ability to innovate and grow. Inclusive economic institutions, ...
Balance between individual freedoms and societal regulations
In the future depicted in '2030 d.
C.', the delicate balance between individual freedoms and societal regulations is a central...
Friendship should not be mistaken for dominance
Friendship should not be mistaken for dominance. It is a subtle distinction but an important one. True friendship is built on m...
The Glorious Revolution in Britain weakened extractive institutions
The Glorious Revolution in Britain, which took place in 1688, played a pivotal role in reshaping the country's political and ec...
Botswana's inclusive institutions fueled its economic success
In Botswana, the presence of inclusive institutions has played a crucial role in driving economic success. These institutions h...
Climate change is a social justice issue
The idea that climate change is a social justice issue runs against the dominant narratives of our time. We are told that the o...
Indigenous peoples hold important knowledge on sustainability
Indigenous peoples hold important knowledge on sustainability that is crucial in the fight against climate change. This knowled...