Inclusive vs. Extractive Institutions
INCLUSIVE INSTITUTIONS 🏛️
Economic
  • Secure property rights
  • Free markets & competition
  • Access to capital
  • Rule of law
  • Creative destruction allowed
Political
  • Pluralistic power
  • Checks & balances
  • Free and fair elections
  • Protection from arbitrary power
🌍 UK · USA · South Korea · Botswana
EXTRACTIVE INSTITUTIONS ⛓️
Economic
  • No property rights
  • Monopolised markets
  • Blocked entry for newcomers
  • Elite enrichment only
  • Creative destruction blocked
Political
  • Power concentrated in elite
  • No accountability
  • Rigged elections
  • Arbitrary rule
🔒 North Korea · Zimbabwe · Colonial Congo · Soviet USSR