Ivana Ostojić, a researcher at the Center for Economic Research at the Institute of Social Sciences, delivered a lecture on June 18th titled Inclusive and Extractive Institutions as Factors of Economic Growth.
Numerous studies have focused on why there are significant differences in income levels and living standards between wealthier and poorer countries. Research has examined geographic locations, climate conditions, cultural traits, work ethics, and more, attempting to find answers to why certain societies are poor and fail to achieve economic success. However, studies have shown that the differences between countries are primarily based on institutions, and that institutions are the reason why some countries remain poor and economically underdeveloped, despite having significant natural resources. Countries experience economic growth depending on the economic and political institutions that either promote or undermine that growth.
