Encyclopedia of Opinion
Question
What are the positions on why nations fail?
Position‹2 of 4›

Exclusive institutions

Proponents argue that failure follows from economic institutions that extract rather than include: where property is insecure and entry is blocked, there is little reason to invest or to build, and resources stay with incumbents.

Supporting arguments · 2

  1. Nobody builds what can be taken, so insecure property stops investment
  2. Blocking entry protects incumbents and stops resources moving to better uses