Economist and political scientist at the University of Chicago. The fundamental inquiry of political economy is why some nations achieve enduring prosperity while others are trapped in cycles of poverty and collapse. The answer lies not in geography or culture, but in the systems and rules that govern societies. When we evaluate the economic success or failure of a nation, we are ultimately evaluating its institutions. Economic outcomes are inextricably linked to the frameworks societies devise to shape incentives and opportunities. Nations fail when they are captured by “extractive institutions” — structures purposefully designed to siphon wealth and power from the majority to serve the narrow interests of a small elite.
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