--- title: "7 Inclusive Institutions Quotes By Daron Acemoğlu" description: "7 Inclusive Institutions quotes by Daron Acemoğlu. Plus more from Daron Acemoğlu and more Inclusive Institutions sayings from other authors." image: "https://sms4smile.com/quotes/i/21b/daron-acemo-lu-4415_civil-war_australia-like-the-united-states-experie_7387.jpg" --- > [“AUSTRALIA, LIKE THE UNITED STATES, experienced a different path to inclusive institutions than the one taken by England. The same revolutions that…](https://sms4smile.com/quotes/daron-acemo-lu/australia-like-the-united-states-experienced-a-different-path-to/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) [Image](https://sms4smile.com/quotes/i/21b/daron-acemo-lu-4415_civil-war_australia-like-the-united-states-experie_7387.jpg) > [“Our theory has attempted to achieve this by operating on two levels. The first is the distinction between extractive and inclusive economic…](https://sms4smile.com/quotes/daron-acemo-lu/our-theory-has-attempted-to-achieve-this-by-operating-on-two-levels/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) [Image](https://sms4smile.com/quotes/i/318/daron-acemo-lu-4415_quote_our-theory-has-attempted-to-achieve-this_1176712.jpg) > [“Inclusive economic and political institutions do not emerge by themselves. They are often the outcome of significant conflict between elites resisting economic…](https://sms4smile.com/quotes/daron-acemo-lu/inclusive-economic-and-political-institutions-do-not-emerge-by/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) [Image](https://sms4smile.com/quotes/i/74e/daron-acemo-lu-4415_change_inclusive-economic-and-political-institu_1651817.jpg) > [“The synergies between extractive economic and political institutions create a vicious circle, where extractive institutions, once in place, tend to persist. Similarly,…](https://sms4smile.com/quotes/daron-acemo-lu/the-synergies-between-extractive-economic-and-political-institutions/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) [Image](https://sms4smile.com/quotes/i/03e/daron-acemo-lu-4415_around-the-world_the-synergies-between-extractive-economi_1812039.jpg) > [“WE SAW HOW INCLUSIVE economic and political institutions emerge. But why do they persist over time? The history of the Black Act…](https://sms4smile.com/quotes/daron-acemo-lu/we-saw-how-inclusive-economic-and-political-institutions-emerge-but/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) [Image](https://sms4smile.com/quotes/i/abc/daron-acemo-lu-4415_political-power_we-saw-how-inclusive-economic-and-politi_2150639.jpg) > [“The process of economic growth and the inclusive institutions upon which it is based create losers as well as winners in the…](https://sms4smile.com/quotes/daron-acemo-lu/the-process-of-economic-growth-and-the-inclusive-institutions-upon/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) [Image](https://sms4smile.com/quotes/i/391/daron-acemo-lu-4415_economic-growth_the-process-of-economic-growth-and-the-i_2577389.jpg) > [“BOTSWANA, CHINA, and the U.S. South, just like the Glorious Revolution in England, the French Revolution, and the Meiji Restoration in Japan,…](https://sms4smile.com/quotes/daron-acemo-lu/botswana-china-and-the-u-s-south-just-like-the-glorious-revolution-in/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) [Image](https://sms4smile.com/quotes/i/eed/daron-acemo-lu-4415_french-revolution_botswana-china-and-the-u-s-south-just-li_2803658.jpg) ## More by Daron Acemoğlu > [“AUSTRALIA, LIKE THE UNITED STATES, experienced a different path to inclusive institutions than the one taken by England. The same revolutions that shook England…](https://sms4smile.com/quotes/daron-acemo-lu/australia-like-the-united-states-experienced-a-different-path-to/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) > [“As such, the usual pattern of interaction between a critical juncture and existing institutional differences leading to further institutional and economic divergence played out…](https://sms4smile.com/quotes/daron-acemo-lu/as-such-the-usual-pattern-of-interaction-between-a-critical-juncture/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) > [“Lack of creative destruction and innovation is not the only reason why there are severe limits to growth under extractive institutions. The history of…](https://sms4smile.com/quotes/daron-acemo-lu/lack-of-creative-destruction-and-innovation-is-not-the-only-reason/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) > [“As with France, an important consequence of the British Industrial Revolution for China and Japan was military vulnerability. China was humbled by British sea…](https://sms4smile.com/quotes/daron-acemo-lu/as-with-france-an-important-consequence-of-the-british-industrial/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) > [“Though the extractive institutions that the Mayas created produced sufficient wealth for the cities to flourish and the elite to become wealthy and generate…](https://sms4smile.com/quotes/daron-acemo-lu/though-the-extractive-institutions-that-the-mayas-created-produced/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) > [“THERE ARE HUGE DIFFERENCES in living standards around the world. Even the poorest citizens of the United States have incomes and access to health…](https://sms4smile.com/quotes/daron-acemo-lu/there-are-huge-differences-in-living-standards-around-the-world-even/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) > [“The Maya’s economy was based on extensive occupational specialization, with skilled potters, weavers, woodworkers, and tool and ornament makers. They also traded obsidian, jaguar…](https://sms4smile.com/quotes/daron-acemo-lu/the-maya-s-economy-was-based-on-extensive-occupational-specialization/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) > [“In the same way, current Chinese growth has nothing to do with Chinese values or changes in Chinese culture; it results from a process…](https://sms4smile.com/quotes/daron-acemo-lu/in-the-same-way-current-chinese-growth-has-nothing-to-do-with-chinese/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) > [“NATIONS FAIL TODAY because their extractive economic institutions do not create the incentives needed for people to save, invest, and innovate. Extractive political institutions…](https://sms4smile.com/quotes/daron-acemo-lu/nations-fail-today-because-their-extractive-economic-institutions-do/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) > [“The geography hypothesis claims that the great divide between rich and poor countries is created by geographical differences. Many poor countries, such as those…](https://sms4smile.com/quotes/daron-acemo-lu/the-geography-hypothesis-claims-that-the-great-divide-between-rich/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) > [“Politics is the process by which a society chooses the rules that will govern it.”](https://sms4smile.com/quotes/daron-acemo-lu/politics-is-the-process-by-which-a-society-chooses-the-rules-that/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) > [“The pattern of vicious circle depicted by the transition between Haile Selassie and Mengistu, or between the British colonial governors of Sierra Leone and…](https://sms4smile.com/quotes/daron-acemo-lu/the-pattern-of-vicious-circle-depicted-by-the-transition-between/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) > [“NATIONS FAIL TODAY because their extractive economic institutions do not create the incentives needed for people to save, invest, and innovate. Extractive political institutions…](https://sms4smile.com/quotes/daron-acemo-lu/nations-fail-today-because-their-extractive-economic-institutions-do-2/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) > [Inclusive economic institutions require secure property rights and economic opportunities not just for the elite but for a broad cross-section of society.](https://sms4smile.com/quotes/daron-acemo-lu/inclusive-economic-institutions-require-secure-property-rights-and/) [Daron Acemoglu](https://sms4smile.com/quotes/author/daron-acemo-lu/) > [“Inequality in the modern world largely results from the uneven dissemination and adoption of technologies,”](https://sms4smile.com/quotes/daron-acemo-lu/inequality-in-the-modern-world-largely-results-from-the-uneven/) [Daron Acemoğlu](https://sms4smile.com/quotes/author/daron-acemo-lu/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "ItemList", "@id": "https://sms4smile.com/quotes/about/inclusive-institutions/daron-acemo-lu/#itemlist", "name": "7 Inclusive Institutions Quotes By Daron Acemoğlu", "numberOfItems": 7, "itemListElement": [ { "@type": "ListItem", "position": 1, "item": { "@type": "Quotation", "text": "“AUSTRALIA, LIKE THE UNITED STATES, experienced a different path to inclusive institutions than the one taken by England. The same revolutions that shook England during the Civil War and then the Glorious Revolution were not needed in the United States or Australia because of the very different circumstances in which those countries were founded—though this of course does not mean that inclusive institutions were established without any conflict, and, in the process, the United States had to throw off British colonialism. In England there was a long history of absolutist rule that was deeply entrenched and required a revolution to remove it. In the United States and Australia, there was no such thing. Though Lord Baltimore in Maryland and John Macarthur in New South Wales might have aspired to such a role, they could not establish a strong enough grip on society for their plans to bear fruit. The inclusive institutions established in the United States and Australia meant that the Industrial Revolution spread quickly to these lands and they began to get rich. The path these countries took was followed by colonies such as Canada and New Zealand. There”", "creator": { "@type": "Person", "name": "Daron Acemoğlu" }, "url": "https://sms4smile.com/quotes/daron-acemo-lu/australia-like-the-united-states-experienced-a-different-path-to/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/21b/daron-acemo-lu-4415_civil-war_australia-like-the-united-states-experie_7387.jpg", "contentUrl": "https://sms4smile.com/quotes/i/21b/daron-acemo-lu-4415_civil-war_australia-like-the-united-states-experie_7387.jpg", "url": "https://sms4smile.com/quotes/i/21b/daron-acemo-lu-4415_civil-war_australia-like-the-united-states-experie_7387.jpg", "width": 1080, "height": 1080, "caption": "“AUSTRALIA, LIKE THE UNITED STATES, experienced a different path to inclusive institutions than the one taken…” — Daron Acemoğlu", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 2, "item": { "@type": "Quotation", "text": "“Our theory has attempted to achieve this by operating on two levels. The first is the distinction between extractive and inclusive economic and political institutions. The second is our explanation for why inclusive institutions emerged in some parts of the world and not in others. While the first level of our theory is about an institutional interpretation of history, the second level is about how history has shaped institutional trajectories of nations. Central”", "creator": { "@type": "Person", "name": "Daron Acemoğlu" }, "url": "https://sms4smile.com/quotes/daron-acemo-lu/our-theory-has-attempted-to-achieve-this-by-operating-on-two-levels/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/318/daron-acemo-lu-4415_quote_our-theory-has-attempted-to-achieve-this_1176712.jpg", "contentUrl": "https://sms4smile.com/quotes/i/318/daron-acemo-lu-4415_quote_our-theory-has-attempted-to-achieve-this_1176712.jpg", "url": "https://sms4smile.com/quotes/i/318/daron-acemo-lu-4415_quote_our-theory-has-attempted-to-achieve-this_1176712.jpg", "width": 1080, "height": 1080, "caption": "“Our theory has attempted to achieve this by operating on two levels. The first is the distinction between…” — Daron Acemoğlu", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 3, "item": { "@type": "Quotation", "text": "“Inclusive economic and political institutions do not emerge by themselves. They are often the outcome of significant conflict between elites resisting economic growth and political change and those wishing to limit the economic and political power of existing elites. Inclusive institutions emerge during critical junctures, such as during the Glorious Revolution in England or the foundation of the Jamestown colony in North America, when a series of factors weaken the hold of the elites in power, make their opponents stronger, and create incentives for the formation of a pluralistic society. The outcome of political conflict is never certain, and even if in hindsight we see many historical events as inevitable, the path of history is contingent. Nevertheless, once in place, inclusive economic and political institutions tend to create a virtuous circle, a process of positive feedback, making it more likely that these institutions will persist and even expand. The”", "creator": { "@type": "Person", "name": "Daron Acemoğlu" }, "url": "https://sms4smile.com/quotes/daron-acemo-lu/inclusive-economic-and-political-institutions-do-not-emerge-by/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/74e/daron-acemo-lu-4415_change_inclusive-economic-and-political-institu_1651817.jpg", "contentUrl": "https://sms4smile.com/quotes/i/74e/daron-acemo-lu-4415_change_inclusive-economic-and-political-institu_1651817.jpg", "url": "https://sms4smile.com/quotes/i/74e/daron-acemo-lu-4415_change_inclusive-economic-and-political-institu_1651817.jpg", "width": 1080, "height": 1080, "caption": "“Inclusive economic and political institutions do not emerge by themselves. They are often the outcome of…” — Daron Acemoğlu", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 4, "item": { "@type": "Quotation", "text": "“The synergies between extractive economic and political institutions create a vicious circle, where extractive institutions, once in place, tend to persist. Similarly, there is a virtuous circle associated with inclusive economic and political institutions. But neither the vicious nor the virtuous circle is absolute. In fact, some nations live under inclusive institutions today because, though extractive institutions have been the norm in history, some societies have been able to break the mold and transition toward inclusive institutions. Our explanation for these transitions is historical, but not historically predetermined. Major institutional change, the requisite for major economic change, takes place as a result of the interaction between existing institutions and critical junctures. Critical junctures are major events that disrupt the existing political and economic balance in one or many societies, such as the Black Death, which killed possibly as much as half the population of most areas in Europe during the fourteenth century; the opening of Atlantic trade routes, which created enormous profit opportunities for many in Western Europe; and the Industrial Revolution, which offered the potential for rapid but also disruptive changes in the structure of economies around the world. Existing”", "creator": { "@type": "Person", "name": "Daron Acemoğlu" }, "url": "https://sms4smile.com/quotes/daron-acemo-lu/the-synergies-between-extractive-economic-and-political-institutions/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/03e/daron-acemo-lu-4415_around-the-world_the-synergies-between-extractive-economi_1812039.jpg", "contentUrl": "https://sms4smile.com/quotes/i/03e/daron-acemo-lu-4415_around-the-world_the-synergies-between-extractive-economi_1812039.jpg", "url": "https://sms4smile.com/quotes/i/03e/daron-acemo-lu-4415_around-the-world_the-synergies-between-extractive-economi_1812039.jpg", "width": 1080, "height": 1080, "caption": "“The synergies between extractive economic and political institutions create a vicious circle, where…” — Daron Acemoğlu", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 5, "item": { "@type": "Quotation", "text": "“WE SAW HOW INCLUSIVE economic and political institutions emerge. But why do they persist over time? The history of the Black Act and the limits to its implementation illustrate the virtuous circle, a powerful process of positive feedback that preserves these institutions in the face of attempts at undermining them and, in fact, sets in motion forces that lead to greater inclusiveness. The logic of virtuous circles stems partly from the fact that inclusive institutions are based on constraints on the exercise of power and on a pluralistic distribution of political power in society, enshrined in the rule of law. The ability of a subset to impose its will on others without any constraints, even if those others are ordinary citizens, as Huntridge was, threatens this very balance.”", "creator": { "@type": "Person", "name": "Daron Acemoğlu" }, "url": "https://sms4smile.com/quotes/daron-acemo-lu/we-saw-how-inclusive-economic-and-political-institutions-emerge-but/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/abc/daron-acemo-lu-4415_political-power_we-saw-how-inclusive-economic-and-politi_2150639.jpg", "contentUrl": "https://sms4smile.com/quotes/i/abc/daron-acemo-lu-4415_political-power_we-saw-how-inclusive-economic-and-politi_2150639.jpg", "url": "https://sms4smile.com/quotes/i/abc/daron-acemo-lu-4415_political-power_we-saw-how-inclusive-economic-and-politi_2150639.jpg", "width": 1080, "height": 1080, "caption": "“WE SAW HOW INCLUSIVE economic and political institutions emerge. But why do they persist over time? The…” — Daron Acemoğlu", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 6, "item": { "@type": "Quotation", "text": "“The process of economic growth and the inclusive institutions upon which it is based create losers as well as winners in the political arena and in the economic marketplace. Fear of creative destruction is often at the root of the opposition to inclusive economic and political institutions.”", "creator": { "@type": "Person", "name": "Daron Acemoğlu" }, "url": "https://sms4smile.com/quotes/daron-acemo-lu/the-process-of-economic-growth-and-the-inclusive-institutions-upon/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/391/daron-acemo-lu-4415_economic-growth_the-process-of-economic-growth-and-the-i_2577389.jpg", "contentUrl": "https://sms4smile.com/quotes/i/391/daron-acemo-lu-4415_economic-growth_the-process-of-economic-growth-and-the-i_2577389.jpg", "url": "https://sms4smile.com/quotes/i/391/daron-acemo-lu-4415_economic-growth_the-process-of-economic-growth-and-the-i_2577389.jpg", "width": 1080, "height": 1080, "caption": "“The process of economic growth and the inclusive institutions upon which it is based create losers as well…” — Daron Acemoğlu", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } }, { "@type": "ListItem", "position": 7, "item": { "@type": "Quotation", "text": "“BOTSWANA, CHINA, and the U.S. South, just like the Glorious Revolution in England, the French Revolution, and the Meiji Restoration in Japan, are vivid illustrations that history is not destiny. Despite the vicious circle, extractive institutions can be replaced by inclusive ones. But it is neither automatic nor easy. A confluence of factors, in particular a critical juncture coupled with a broad coalition of those pushing for reform or other propitious existing institutions, is often necessary for a nation to make strides toward more inclusive institutions. In addition some luck is key, because history always unfolds in a contingent way.”", "creator": { "@type": "Person", "name": "Daron Acemoğlu" }, "url": "https://sms4smile.com/quotes/daron-acemo-lu/botswana-china-and-the-u-s-south-just-like-the-glorious-revolution-in/", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/eed/daron-acemo-lu-4415_french-revolution_botswana-china-and-the-u-s-south-just-li_2803658.jpg", "contentUrl": "https://sms4smile.com/quotes/i/eed/daron-acemo-lu-4415_french-revolution_botswana-china-and-the-u-s-south-just-li_2803658.jpg", "url": "https://sms4smile.com/quotes/i/eed/daron-acemo-lu-4415_french-revolution_botswana-china-and-the-u-s-south-just-li_2803658.jpg", "width": 1080, "height": 1080, "caption": "“BOTSWANA, CHINA, and the U.S. South, just like the Glorious Revolution in England, the French Revolution…” — Daron Acemoğlu", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } } } ] }, { "@type": "CollectionPage", "@id": "https://sms4smile.com/quotes/about/inclusive-institutions/daron-acemo-lu/#webpage", "url": "https://sms4smile.com/quotes/about/inclusive-institutions/daron-acemo-lu/", "name": "Inclusive Institutions Quotes by Daron Acemoğlu", "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "mainEntity": { "@id": "https://sms4smile.com/quotes/about/inclusive-institutions/daron-acemo-lu/#itemlist" }, "primaryImageOfPage": { "@id": "https://sms4smile.com/quotes/i/21b/daron-acemo-lu-4415_civil-war_australia-like-the-united-states-experie_7387.jpg" }, "description": "7 Inclusive Institutions quotes by Daron Acemoğlu. 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