- The Colonial Origins of Comparative Development: An Empirical Investigation - paper by DARON ACEMOGLU, SIMON JOHNSON, AND JAMES A. ROBINSON
- 2024 prize lecture in economic sciences | Daron Acemoglu, Simon Johnson and James Robinson
Massive difference in wealth between countries. 12 richest countries about 60+ times richer than the poorest. (How much growth is required to achieve good lives for all? Insights from needs-based analysis - Jason Hickel, Dylan Sullivan)
Institutions shape incentives and opportunities.
Extractive vs inclusive institutions.
May be that instead of rich countries being able to “afford” better institutions it is the other way around: better institutions “afford” better conditions and growth
Rule of law index - Expert estimates of the extent to which the government complies with the law, courts are independent, laws transparent, justice accessible, corruption absent, and the bureaucracy is impartial. The index ranges from 0 to 1 (most rule-based).
The higher potential settler mortality the smaller the resulting rule of law and GDP in the future
Better distribution offers better efficiency and better knowledge, experimentation, innovation, growth overall, but a smaller piece of the pie for the powerful. There is strong incentive to not lost the piece of the pie even if it means stunting efficiency overall. If politically powerful shift the frontier towards more extractive action it leads to loss of collective knowledge, experimentation, innovation. Might lead to political creative destruction.
Institutional change needed for lasting change. “Principle of my reform is to prevent the necessity or revolution”
Ideological factors and possible mobility of settlers created more balanced distribution.
Automation technologies typically tilts in favour of capital owners. However automation like AI can go in both directions: either to excessive automation which stunts growth and provides bigger pie for the powerful but worse efficiency and distribution OR to encourage and facilitate everyone. If we automate the human itself out of the equation of the economy, society, life: what exactly is the point?