{{ Central to their research is a view that places that have succeeded have inclusive political and economic institutions that help prop each other up. Inclusive economic institutions, such as an education system, a market economy and functioning financial system encourage economic participation by a nation’s people. Inclusive political institutions ensure that economic power is shared, creating a virtuous cycle.
On the other hand, “extractive” economic and political institutions create an adverse feedback loop, where elites grab onto economic power, backed up by the state. Under those conditions, people are less willing to engage in the economy, knowing that the fruits of their labor could be arbitrarily taken away. }}
Seems that US-style “crony capitalism” and Private Equity would lead to suboptimal outcomes. {{ LOL }}
intercst