“NATIONS FAIL TODAY because their extractive economic institutions do not create the incentives needed for people to save, invest, and innovate. Extractive… — Daron Acemoğlu Copy Share Image
“Politics is the process by which a society chooses the rules that will govern it.” — Daron Acemoğlu Copy Share Image
“Both feared that the mechanization of stocking production would be politically destabilizing. It would throw people out of work, create unemployment and… — Daron Acemoğlu Copy Share Image
“We saw in the previous chapter how the process of political centralization under the Tudor monarchy in England increased demands for voice… — Daron Acemoğlu Copy Share Image
“Economics has gained the title Queen of the Social Sciences by choosing solved political problems as its domain.” — Daron Acemoğlu Copy Share Image
“Max Weber, who we met in the previous chapter, provided the most famous and widely accepted definition of the state, identifying it… — Daron Acemoğlu Copy Share Image
“Without the changes in political institutions and political power similar to those that emerged in England after 1688, there was little chance… — Daron Acemoğlu Copy Share Image
“Inclusive economic and political institutions do not emerge by themselves. They are often the outcome of significant conflict between elites resisting economic… — Daron Acemoğlu Copy Share Image
“No two societies create the same institutions; they will have distinct customs, different systems of property rights, and different ways of dividing… — Daron Acemoğlu Copy Share Image
“The synergies between extractive economic and political institutions create a vicious circle, where extractive institutions, once in place, tend to persist. Similarly,… — Daron Acemoğlu Copy Share Image
“The process of political centralization can actually lead to a form of absolutism, as the king and his associates can crush other… — Daron Acemoğlu Copy Share Image
“Inclusive economic and political institutions do not emerge by themselves. They are often the outcome of significant conflict between elites resisting economic… — Daron Acemoğlu Copy Share Image
“But given the changes that had already taken place in economic and political institutions, long-run repression was not a solution in England.… — Daron Acemoğlu Copy Share Image
“WE SAW HOW INCLUSIVE economic and political institutions emerge. But why do they persist over time? The history of the Black Act… — Daron Acemoğlu Copy Share Image
“We will refer to political institutions that are sufficiently centralized and pluralistic as inclusive political institutions. When either of these conditions fails,… — Daron Acemoğlu Copy Share Image
“When the barons and local elites recognize that political power will be increasingly more centralized and that this process is hard to… — Daron Acemoğlu Copy Share Image
“But in many other cases, just the opposite takes place, and the process of political centralization also ushers in an era of… — Daron Acemoğlu Copy Share Image
“The political institutions of a society are a key determinant of the outcome of this game. They are the rules that govern… — Daron Acemoğlu Copy Share Image
“Finally, when growth comes under extractive political institutions but where economic institutions have inclusive aspects, as they did in South Korea, there… — Daron Acemoğlu Copy Share Image
“A remarkable thing about new technologies in the Roman period is that their creation and spread seem to have been driven by… — Daron Acemoğlu Copy Share Image
“Political power was thus widely dispersed in Somali society, almost pluralistically. But without the authority of a centralized state to enforce order,… — Daron Acemoğlu Copy Share Image
“The solution to the economic and political failure of nations today is to transform their extractive institutions toward inclusive ones. The vicious… — Daron Acemoğlu Copy Share Image
“The government in North Korea is a communist dictatorship opposed to private property and markets. But it is difficult to control black… — Daron Acemoğlu Copy Share Image
“The process of economic growth and the inclusive institutions upon which it is based create losers as well as winners in the… — Daron Acemoğlu Copy Share Image
“Congo, vividly illustrates how political institutions determine economic institutions and, through these, the economic incentives and the scope for economic growth.” — Daron Acemoğlu Copy Share Image
“AUSTRALIA, LIKE THE UNITED STATES, experienced a different path to inclusive institutions than the one taken by England. The same revolutions that shook England… — Daron Acemoğlu Copy Share Image
“As such, the usual pattern of interaction between a critical juncture and existing institutional differences leading to further institutional and economic divergence played out… — Daron Acemoğlu Copy Share Image
“Lack of creative destruction and innovation is not the only reason why there are severe limits to growth under extractive institutions. The history of… — Daron Acemoğlu Copy Share Image
“As with France, an important consequence of the British Industrial Revolution for China and Japan was military vulnerability. China was humbled by British sea… — Daron Acemoğlu Copy Share Image
“Though the extractive institutions that the Mayas created produced sufficient wealth for the cities to flourish and the elite to become wealthy and generate… — Daron Acemoğlu Copy Share Image
“THERE ARE HUGE DIFFERENCES in living standards around the world. Even the poorest citizens of the United States have incomes and access to health… — Daron Acemoğlu Copy Share Image
“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… — Daron Acemoğlu Copy Share Image
“In the same way, current Chinese growth has nothing to do with Chinese values or changes in Chinese culture; it results from a process… — Daron Acemoğlu Copy Share Image
“NATIONS FAIL TODAY because their extractive economic institutions do not create the incentives needed for people to save, invest, and innovate. Extractive political institutions… — Daron Acemoğlu Copy Share Image
“The geography hypothesis claims that the great divide between rich and poor countries is created by geographical differences. Many poor countries, such as those… — Daron Acemoğlu Copy Share Image
“Politics is the process by which a society chooses the rules that will govern it.” — Daron Acemoğlu Copy Share Image
“The pattern of vicious circle depicted by the transition between Haile Selassie and Mengistu, or between the British colonial governors of Sierra Leone and… — Daron Acemoğlu Copy Share Image
