Roosevelt Institute | Cornell University

The Effect of Secure Property Rights on Economic Growth

By Malavika Madgavkar Published May 1, 2013

Economist Douglass North argues that the key to sustained economic growth is efficient economic institutions. By efficient, he means that they provide incentives for individuals to engage in economic activity that is socially beneficial. Until recent times, according to North, governments mainly hindered economic growth because they were extractive institutions, which focused on maximizing the ruler's wealth and not the nation's.