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All the difference in the world (MIT)
It is among the grandest topics in scholarship: Why do some nations, such as
the United States, become wealthy and powerful, while others remain stuck in
poverty? And why do some of those powers, from ancient Rome to the modern
Soviet Union, expand and then collapse?
From Adam Smith and Max Weber to the current day, scores of writers have
grappled with these questions. Some scholars, like Weber, have argued that
religious or cultural differences create vastly different economic outcomes
among countries. Others have asserted that a lack of natural resources or
technical expertise has prevented poor countries from creating self-sustaining
economic growth.
Economists Daron Acemoglu of MIT and James Robinson of Harvard University have
another answer: Politics makes the difference. Countries that have what they
call “inclusive” political governments — those extending political and
property rights as broadly as possible, while enforcing laws and providing
some public infrastructure — experience the greatest growth over the long run.
By contrast, Acemoglu and Robinson assert, countries with “extractive”
political systems — in which power is wielded by a small elite — either fail
to grow broadly or wither away after short bursts of economic expansion.
“You need political equality ...
MIT
