What are extractive political institutions?

Extractive political institutions are systems of governance that concentrate power and resources in the hands of a small elite, often to the detriment of the broader population. These institutions typically lack accountability, limit political participation, and suppress individual freedoms, thereby enabling the elite to exploit resources and maintain control. This leads to economic inequality and underdevelopment, as opportunities for growth and innovation are stifled. In contrast, inclusive political institutions promote broader participation and equitable resource distribution, fostering sustainable development.