Pakistan, Jan. 26 -- Why do some nations thrive while others falter? It is a question I have thought about often, especially when travelling or reading the news. The answer is not about luck, geography or even natural resources. It boils down to something less tangible but far more important: the quality of a nation's institutions. Institutions - those systems and rules that govern a society - can make or break a country.

When I first heard about Daron Acemoglu and James Robinson's book Why Nations Fail, I was hooked by the idea that nations succeed or fail based on whether their institutions are inclusive or extractive. This framework opened my eyes to patterns that have played out again and again throughout history. Inclusive instituti...