Inclusive economic institutions provide foundations upon which inclusive political institutions can flourish, while inclusive political institutions restrict deviations away from inclusive economic institutions.

This synergistic relationship between extractive economic and political institutions introduces a strong feedback loop: political institutions enable the elites controlling political power to choose economic institutions with few constraints or opposing forces. They also enable the elites to structure future political institutions and their evolution. Extractive economic institutions, in turn, enrich the same elites, and their economic wealth and power help consolidate their political dominance

The ability of economic institutions to harness the potential of inclusive markets, encourage technological innovation, invest in people, and mobilize the talents and skills of a large number of individuals is critical for economic growth.

The low education level of poor countries is caused by economic institutions that fail to create incentives for parents to educate their children and by political institutions that fail to induce the government to build, finance, and support schools and the wishes of parents and children. The price these nations pay for low education of their population and lack of inclusive markets is high. They fail to mobilize their nascent talent. They have many potential Bill Gateses and perhaps one or two Albert Einsteins who are now working as poor, uneducated farmers, being coerced to do what they don’t want to do or being drafted into the army, because they never had the opportunity to realize their vocation in life.

THE CONTRAST OF South and North Korea, and of the United States and Latin America, illustrates a general principle. Inclusive economic institutions foster economic activity, productivity growth, and economic prosperity. Secure private property rights are central, since only those with such rights will be willing to invest and increase productivity. A businessman who expects his output to be stolen, expropriated, or entirely taxed away will have little incentive to work, let alone any incentive to undertake investments and innovations. But such rights must exist for the majority of people in society

By the late 1990s, in just about half a century, South Korean growth and North Korean stagnation led to a tenfold gap between the two halves of this once-united country—imagine what a difference a couple of centuries could make. The economic disaster of North Korea, which led to the starvation of millions, when placed against the South Korean economic success, is striking: neither culture nor geography nor ignorance can explain the divergent paths of North and South Korea.

В целом имеющиеся сегодня исследования позволяют лучше понять основные черты, силу и слабости сталинской модели индустриализации. С одной стороны, она позволяла мобилизовать ресурсы на решение отдельных приоритетных задач, прежде всего создание мощного военного потенциала. С другой – была недостаточно эффективна, требовала огромных материальных затрат и тяжелых жертв от народа. Созданная при Сталине сверхцентрализованная экономика была не слишком восприимчива к техническому прогрессу, в ней отсутствовали внутренние стимулы для совершенствования и гибкости. Такая система, уязвимая с самого начала и временная по своей сути, давала все более очевидные сбои еще при жизни Сталина.

recognizing that in spite of how emotional it seems, it is not the other party who should be blamed for the situation, but rather that we are both captured in a conflict that does not have an amicable compromise

Whenever you identify that you are in a negotiation situation that doesn’t have an acceptable compromise, take the first step: immediately stop the dialogue.”

I start to feel that the other person is obstinate and illogical, the other person is developing exactly the same opinion of me