Paths to the Periphery

James A. Robinson

No 20148, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: My research suggests that world inequality is explained by the incidence of extractive and inclusive institutions. But why do some countries have extractive institutions? I distinguish between two main reasons; first, power relations; second, the “normative order.†Normative orders provide justifications and legitimacy for institutions which may not generate prosperity, but may achieve other goals. These distinctions are critical because they create very different challenges in trying to make institutions more inclusive and create prosperity. I show how countries move from the economic periphery as a consequence of changing both. My own intellectual journey has been in the other direction, however, hence the title of the paper: I was fortunate to be born in Britain, but I have had to unlearn much of my own experience, socialization and training in order to see other societies on their own terms. That’s crucial to be able to help them, but also to learn from them.

Keywords: comparative economic prosperity; Institutions; Political economy; Culture (search for similar items in EconPapers)
JEL-codes: D63 D72 O47 P00 Z1 (search for similar items in EconPapers)
Date: 2025-04
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