Distinction between extractive and inclusive institutions - the institutional component of their theory and --
Mechanism for the emergence of inclusion in a world historically characterized by extraction.
I wonder if any of my fellow clubbers are struggling to articulate the second part of the theory?
The theory seems to rest on the idea of circles - vicious ones that support extractive institutions (which tend to persist and can generate short term growth) and virtuous ones that support inclusive institutions.
Again, how convincing is this analysis?
One of my persisting questions is the role of the "degree of state centralization" (441) as it seems that centralization at the supranational level and at the subnational levels (to use the terminology employed by North in Violence and the Social Order) plays a part in both circles and both types of institutional evolution.
I found the empowerment discussion as a transitional mechanism disappointing and not as clear as I would have liked.