DARON ACEMOGLU, JAMES ROBINSON

For the record, however, before cheerleading Slim, Gates might want to read the OECD’s 2012 report on telecommunications policy and regulation in Mexico, which estimates the social costs of Slim’s monopoly at U.S. $129 billion and counting. (The latest Forbes list of the world’s richest people puts Slim’s net worth at U.S. $79 billion). So in what way is Mexico better off exactly? Gates also complains in his review that we “ridicule modernization theory.” We don’t. We try to articulate an alternative theory of extractive growth — which takes place under extractive, authoritarian political institutions — where countries grow because their leadership controlling these extractive institutions feels secure and able to control and benefit from the growth process. This occupies a large part of our book because it is a central feature of economic and political development over the last several thousand years. Our theory suggests why extractive growth doesn’t automatically lead to more inclusive institutions: Growth is made possible, at least in most cases, by the leaders and dominant elites’ belief in their relative security.

A majority of the Madison School Board rejected the proposed Madison Preparatory IB charter school. This, despite our long term, disastrous resding results.