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Institutions - Coggle Diagram
Institutions
the rules of games in society
they shape behaviour
shape expectations
limit personal freedom
informal vs formal
economic institutions
human capital (education)
GDP/ capita
capital (money)
technology (machines )
Inclusive institutions change the pie
new markets and techonologies shrink current industries
empower citizens
North vs South Korea
Democracy harms development
economic rules are volatile
tax the wealthy
need to insulate policy - making from populist demands
Authoritarianism can work
if the elite chose not to extract
the elite believe they can develop without loosing power
the elite promises to maintain inclusive economic instiutions that are credible
inclusive vs extractive instiutions
inclusive: rule of law, healthcare, property rights, usage of talents and abilities allowed participation), education, no discriminatory policies
extractive
slavery, exproportion, no education
Botswana vs Nigeria
Same institutions but different instituitonal strength