Daron Acemoglu and James A. Robinson
Geography and culture do not adequately explain why some nations prosper while others remain poor. A country's fate depends largely on whether its political framework empowers broad participation or extracts wealth for the elite.
Political institutions dictate economic outcomes because those who hold political power design the economic rules to serve their own interests.
Inclusive societies foster prosperity by enforcing property rights, ensuring a level playing field, and providing broad incentives for mass participation in markets.
Extractive regimes often stifle innovation and block technological advancement because elites fear that economic disruption could undermine their political power.