1. Geography and Climate Have no effect on prosperity
1.1. South Korea vs North Korea and North Nogales Vs South Nogales
2. Politics Determine Economy
2.1. Political Institution
2.1.1. Who has power
2.1.2. To what end, how much he use power
2.1.3. Absolutist
2.1.3.1. Unlimited power in few hands
2.1.4. Inclusive
2.1.4.1. Constraints On Power
3. Virtuous Cycle
3.1. Inclusive Politics Institutions
3.1.1. Inclusive Economic Institutions
3.1.1.1. Even distribution of power and wealth
3.1.1.1.1. Rich democracy strong, poor democracy weak
4. How Wars Start
4.1. Powerful elite at top
4.1.1. Uses violent means if possible to protect its interests
4.1.1.1. Starts civil war
5. Why Powerful Elite Is Harmful
5.1. Disinterested in prosperity
5.2. Prevents innovation
5.3. Support extractive institutions
6. Inclusive Institutions
6.1. Plurality
6.1.1. People share in power
6.2. Central political Authority
6.2.1. Law and Order control
6.3. Somalia
6.3.1. Plural
6.3.2. Not have central authority
6.3.2.1. No Inclusive Institutions
7. Critical Juncture
7.1. Exclusive Institutions Become Inclusive
7.2. Bubonic Plague in England
7.2.1. Population decline
7.2.1.1. Lobure got bargaining power
7.2.1.1.1. Pushed institutions to be inclusive
7.3. Bubonic plague benifited UK
7.3.1. Not every hardship is a curse
7.3.2. Hardships may have good effects
8. Vicious Cycle
8.1. Extactive political Institutions
8.1.1. Extractive Economic Institutions
8.1.1.1. Few Get Power and Wealth
8.1.1.1.1. Few control institutions
8.2. Former British Colonies
8.2.1. Poor bcs vicious cycle
8.2.1.1. Has not been broken
8.2.1.1.1. The way colonialism affected the world