Institutions and Development
“Humanly devised constraints that structure political, economic and social interaction. They consist of both informal constraints (sanctions, taboos, customs, traditions and codes of conduct), and formal rules (constitutions, laws, property rights).”
- Douglas North
Hypothesis 1: Inclusive economic institutions promote investment and economic growth, while extractive institutions discourage investment and hamper economic growth
Hypothesis 2: Inclusive political institutions encourage the development of inclusive economic institutions and vice-versa
Acemoglu & Robinson, figure 3
North Korea nighttime lights
Nogales Sonora (left), Nogales Arizona (right) in 2021
Acemoglu & Robinson, figure 4
Source: Maddison Project Database, version 2018.
Source: Maddison Project Database, version 2018.
National Memorial for Peace and Justice
Girls rolling roads in India, 1930
Source: Maddison Project Database, version 2018.