Greg Rosalski

Yeah, like in general, why are some institutions so good for economic growth and other institutions so bad?

Okay, so inclusive and extractive institutions. This is at the heart of the theory they lay out in their book. Inclusive institutions are institutions that serve a wide swath of society. They kind of spread opportunity around, incentivizing and empowering people to succeed in a free market economy. And that's why James and Duran argue inclusive institutions are good for economic growth.

Okay, so inclusive and extractive institutions. This is at the heart of the theory they lay out in their book. Inclusive institutions are institutions that serve a wide swath of society. They kind of spread opportunity around, incentivizing and empowering people to succeed in a free market economy. And that's why James and Duran argue inclusive institutions are good for economic growth.

Okay, so inclusive and extractive institutions. This is at the heart of the theory they lay out in their book. Inclusive institutions are institutions that serve a wide swath of society. They kind of spread opportunity around, incentivizing and empowering people to succeed in a free market economy. And that's why James and Duran argue inclusive institutions are good for economic growth.

Or think of like how good public education systems give everybody an opportunity to learn skills and become more productive. Or how antitrust laws prevent monopolization of the economy.

Or think of like how good public education systems give everybody an opportunity to learn skills and become more productive. Or how antitrust laws prevent monopolization of the economy.

Or think of like how good public education systems give everybody an opportunity to learn skills and become more productive. Or how antitrust laws prevent monopolization of the economy.

And sort of the ultimate inclusive political institution, it's democracy. James and Duran have found in the research that democracy, generally speaking, it's good for economic growth.

And sort of the ultimate inclusive political institution, it's democracy. James and Duran have found in the research that democracy, generally speaking, it's good for economic growth.

And sort of the ultimate inclusive political institution, it's democracy. James and Duran have found in the research that democracy, generally speaking, it's good for economic growth.

Of course, this is a big sprawling theory. And to this day, not everyone is convinced. For example, some have pointed to India and China as contradicting their theory. Back in 1980, their economies were neck and neck. They both had roughly the same GDP per capita, about $300 per person per year.

Of course, this is a big sprawling theory. And to this day, not everyone is convinced. For example, some have pointed to India and China as contradicting their theory. Back in 1980, their economies were neck and neck. They both had roughly the same GDP per capita, about $300 per person per year.

Of course, this is a big sprawling theory. And to this day, not everyone is convinced. For example, some have pointed to India and China as contradicting their theory. Back in 1980, their economies were neck and neck. They both had roughly the same GDP per capita, about $300 per person per year.

This one very prominent example doesn't fit so neatly in Duran and James' theory. But they argue, of course, there are nuances to all this.

This one very prominent example doesn't fit so neatly in Duran and James' theory. But they argue, of course, there are nuances to all this.

This one very prominent example doesn't fit so neatly in Duran and James' theory. But they argue, of course, there are nuances to all this.

Yeah, there are still some big questions about this theory. Some have poked holes in their methodology. Others aren't quite convinced that you can boil down all institutions into two categories. Even the Nobel Prize Committee, when it announced their award, they made it clear that their theory is not the final word on why some nations are rich and other nations are poor.

Yeah, there are still some big questions about this theory. Some have poked holes in their methodology. Others aren't quite convinced that you can boil down all institutions into two categories. Even the Nobel Prize Committee, when it announced their award, they made it clear that their theory is not the final word on why some nations are rich and other nations are poor.

Yeah, there are still some big questions about this theory. Some have poked holes in their methodology. Others aren't quite convinced that you can boil down all institutions into two categories. Even the Nobel Prize Committee, when it announced their award, they made it clear that their theory is not the final word on why some nations are rich and other nations are poor.

The research provides this kind of hopeful message that we can build a fairer society and a better economy through the hard work of improving our institutions. That could mean like working to improve schools or keeping government officials accountable or like, I don't know, participating in an election or social movements.