Why some countries fail while others prosper in the Middle East and Africa

Economist and political scientist at the University of Chicago.Published On 16 Sep 202616 Sep 2026The fundamental inquiry of political economy is why some nations achieve enduring prosperity while others are trapped in cycles of poverty and collapse. The answer lies not in geography or culture, but in the systems and rules that govern societies.When we evaluate the economic success or failure of a nation, we are ultimately evaluating its institutions. Economic outcomes are inextricably linked to the frameworks societies devise to shape incentives and opportunities. Nations fail when they are captured by “extractive institutions” — structures purposefully designed to siphon wealth and power from the majority to serve the narrow interests of a small elite.The development dilemma in AfricaThis institutional paradigm offers a clarifying lens through which to understand the enduring developmental crisis in Africa. The continent’s historical economic stagnation — often debated in terms of colonial legacy or democratic transition — is rooted in a long, devastating history of extractive institutions. From the ravages of the slave trade and formal colonialism to the modern struggle for acco...