Change Quote by Daron Acemoğlu
““Without the changes in political institutions and political power similar to those that emerged in England after 1688, there was little chance for absolutist countries to benefit from the innovations and new technologies of the Industrial Revolution. In Spain, for example, the lack of secure property rights and the widespread economic decline meant that people simply did not have the incentive to make the necessary investments and sacrifices. In Russia and Austria-Hungary, it wasn’t simply the neglect and mismanagement of the elites and the insidious economic slide under extractive institutions that prevented industrialization; instead, the rulers actively blocked any attempt to introduce these technologies and basic investments in infrastructure such as railroads that could have acted as their conduits. At””
About This Quote
Source Book: Economic Origins of Dictatorship and Democracy, 2006
Institutional frameworks shape a nation’s capacity to adopt new technologies and drive growth.
In simple terms: Institutions affect technological progress.
Key Takeaway
Support inclusive institutions.
Themes
politics
economics
innovation
Mood
analytical
critical
Type
historical
economic
When to use this quote
- policy reform
- education investment
- infrastructure development
- foreign trade
Key Concepts
institutional economics
industrialization
Questions to Reflect On
- How can entrenched interests be persuaded?
- What incentives spur institutional change?
A Different Perspective
Political resistance can stall reforms despite economic benefits.
