Eurasia Review on Nostr: How Institutional Quality Shapes Our World – OpEd ========== Institutions shape ...
How Institutional Quality Shapes Our World – OpEd
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Institutions shape human behavior and economic progress; they include laws and customs that structure interactions. Daron Acemoglu and James Robinson distinguish between inclusive and extractive institutions; inclusive institutions promote wealth creation while extractive institutions benefit elites. The 2024 Institutional Quality Index (ICI) by RELIAL ranks 183 countries on institutional quality; Denmark, Switzerland, Finland, and New Zealand are the top four, while the US is 18th, dropping four places since 2021. Countries with higher institutional quality tend to have higher per capita incomes; Denmark ranks eighth in per capita GDP. Institutional change is slow, with little movement in the top 20 countries over four years. Strong institutions reduce uncertainty, encourage innovation, and are essential for economic growth. Without them, economies become chaotic and unequal.
#Institutions #EconomicGrowth #InclusiveInstitutions #ExtractiveInstitutions #InstitutionalQualityIndex #Relial #SergioMartínez #EconomicFreedom #PropertyRights #Innovation
https://www.eurasiareview.com/28092024-how-institutional-quality-shapes-our-world-oped/
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Institutions shape human behavior and economic progress; they include laws and customs that structure interactions. Daron Acemoglu and James Robinson distinguish between inclusive and extractive institutions; inclusive institutions promote wealth creation while extractive institutions benefit elites. The 2024 Institutional Quality Index (ICI) by RELIAL ranks 183 countries on institutional quality; Denmark, Switzerland, Finland, and New Zealand are the top four, while the US is 18th, dropping four places since 2021. Countries with higher institutional quality tend to have higher per capita incomes; Denmark ranks eighth in per capita GDP. Institutional change is slow, with little movement in the top 20 countries over four years. Strong institutions reduce uncertainty, encourage innovation, and are essential for economic growth. Without them, economies become chaotic and unequal.
#Institutions #EconomicGrowth #InclusiveInstitutions #ExtractiveInstitutions #InstitutionalQualityIndex #Relial #SergioMartínez #EconomicFreedom #PropertyRights #Innovation
https://www.eurasiareview.com/28092024-how-institutional-quality-shapes-our-world-oped/