Poor countries are often broke on purpose because the people in charge realized that blocking growth is the easiest way to stay in power.
March 13, 2026
Original Paper
<p>The Politics of Growth</p>
SSRN · 6283018
The Takeaway
Most people assume all governments want their citizens to get richer. This model shows that growth is actually a threat to dictators because it creates a wealthy middle class that demands rights; therefore, staying poor is a calculated survival strategy for the people at the top.
From the abstract
This paper develops a model in which a small political elite finds it optimal to pursue a deliberate policy to inhibit growth as a means to retain power. Fear of losing power leads to poverty by design. Growth that leads to higher levels of wealth, in contrast, is an outcome of a ruling coalition that does not fear losing power. If the ruling coalition has broad support, democratic institutions are the means by which such a coalition ensures its hold on power. Sometimes an authoritarian regime h