What is Acemoğlu's central theory on institutions?
My central argument is that inclusive institutions, which distribute political and economic power broadly and protect property rights, are the primary engine of prosperity. Extractive institutions, conversely, concentrate power and wealth in the hands of a small elite, leading to stagnation and poverty. The dynamic interplay between the state and society, often described as navigating a 'narrow corridor,' is crucial for maintaining these inclusive arrangements and preventing a slide back into either tyranny or anarchy.
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