ARTICLE TITLE: Inclusive Institutions – the Key Factor of Sustainable Growth? Article 2
AUTHORS: Arslanov V.
ABSTRACT: The essay (part 1 was published in issue 4) examines some of the key arguments of the influential theory of economic development proposed by Daron Acemoglu and James Robinson by checking their critique of environmental determinism and assessment of the role of institutions in economy against historical data. We show a systematic bias in their interpretation of various cases used to support the claim of a positive effect of inclusive institutions on economic growth, leading to a number of statements incompatible with current historical research. We conclude that by setting countries with inclusive institutions apart from those with extractive institutions and positing inclusive institutions as the single major cause of growth Acemoglu and Robinson understate the complexity of institutional dynamics and the contribution of other factors to economic development.
KEYWORDS: inclusive institutions , extractive institutions , global inequality , institutional drift , critical junctures , political centralization , pluralism , sustainable growth , creative destruction , geographic determinism , colonialism