For economic development, it's not enough just to have a well-functioning financial sector; you also need inclusive political institutions.Daron Acemoğlu
Economic institutions shape economic incentives: the incentives to become educated, to save and invest, to innovate and adopt new technologies, and so on.Daron Acemoğlu
While inclusive economic institutions foster economic prosperity, extractive economic institutions hinder it.Daron Acemoğlu
Inclusive economic institutions that enforce property rights, create a level playing field, and encourage investments in new technologies and skills are more conducive to economic growth than extractive economic institutions that are structured to extract resources from the many by the few.Daron Acemoğlu
Wealth and prosperity are far from being a reality in places where the functioning of economic institutions is thwarted by the political institutions and the distribution of power.Daron Acemoğlu
Political institutions determine who has power in society and to what ends that power can be used.Daron Acemoğlu
Economic development is not going to come by improving the law and order situation or by battling corruption. It needs a more comprehensive approach. It's about changing the very foundations of social and economic relations.Daron Acemoğlu
As long as the fundamental economic problems are not addressed, the ghost of failure will continue to haunt the political institutionsDaron Acemoğlu
Powerful people always try to surround themselves with institutions that support their continued dominance, particularly when their dominance is threatenedDaron Acemoğlu
Inclusive economic institutions require secure property rights and economic opportunities not just for the elite but for a broad cross-section of society.Daron Acemoğlu
Understanding why nations fail is key to making nations work.Daron Acemoğlu