Bookmark

Foundations, analyses
and recommendations.

«Why are some societies more successful than others?»

This fundamental question has been on my mind ever since my time at the University of Zurich. Here, I share articles and books that have shaped my thinking or offer insightful analysis of current developments at the intersection of politics and business.

Recommendation Institutions 2012 Buch

Why Nations Fail

Daron Acemoglu and James A. Robinson

One of the best books about how a country can be successful – or not. I couldn’t stop reading until I reached the end.

Inclusive vs. Extractive Institutions: Nations thrive when they have inclusive institutions—political and economic systems that distribute power and opportunity broadly, encouraging innovation and prosperity. In contrast, extractive institutions concentrate power and wealth in the hands of a few, leading to stagnation and poverty.
History matters but is not destiny: Historical accidents and critical junctures (e.g., colonialism, revolutions) shape a nation’s institutions. Once established, these institutions tend to persist, creating a path dependence that can either foster long-term growth or entrench underdevelopment. But change is still possible if institutions evolve.
Innovation through Creative Destruction: Sustainable economic growth requires creative destruction – the process by which new technologies and ideas replace old ones. Inclusive institutions embrace this change, while extractive ones suppress it to protect the elite, stifling progress.

Buch Politics · Game theory 2011
The Dictator’s Handbook

Bruce Bueno de Mesquita & Alastair Smith

These two political scientists offer a game theory–based approach to understanding why some countries end up as poor dictatorships and others as wealthy democracies. Among other things, they clearly explain why countries rich in natural resources often become poor dictatorships.
- Leaders stay in power by rewarding a small “winning coalition”: Whether in dictatorships or democracies, survival depends on keeping key supporters satisfied. The smaller this group, the easier it is to maintain power through targeted rewards rather than broad public benefits.
- Bad behavior is often rational for staying in power: Corruption, repression, and lack of public goods aren’t necessarily failures—they’re strategies. Leaders prioritize loyalty over national welfare because losing power is worse for them than harming the country.
- Political systems differ mainly in coalition size: Democracies tend to require larger coalitions, pushing leaders to provide public goods (like education or infrastructure). Autocracies rely on smaller coalitions, leading to more private payoffs, inequality, and weaker institutions.
- Rules to Rule By: The book outlines five rules for political survival:
  1. Keep your winning coalition as small as possible.
  2. Control the flow of revenue.
  3. Pay your key supporters just enough to keep them loyal.
  4. Punish disloyalty harshly.
  5. Let the people see you as the source of all good (and bad) in their lives.
Buch Innovation · Growth 2020
The Power of Creative Destruction

Philippe Aghion · Céline Antonin · Simon Bunel

This book helped me understand a lot of things, particularly why startups create jobs while established companies often cut them. It was very helpful to me in one of my mandates.
- Innovation and Growth: Creative destruction (a concept popularized by Schumpeter) is the engine of economic growth. Disruptive innovations replace old technologies, companies, or business models, thereby boosting productivity and progress.
- Role of institutions: For creative destruction to work, institutions (competitive markets, the rule of law, social protection) must encourage innovation while mitigating its negative effects (unemployment, inequality) to maintain social cohesion.
- Public policies: The authors advocate for policies that support innovation (investment in education and R&D) and protect the losers of the transition (training, social safety nets), in order to reconcile economic dynamism with social justice.
Buch Economic systems 2019
Capitalism Alone

Branko Milanović

After all, Fukuyama wasn’t completely wrong with his book “The End of History and the Last Man”. The conflict between capitalist and communist systems has been resolved in favor of capitalism. However, the old contest has been replaced by a new one: Liberal capitalism versus authoritarian capitalism.
- Capitalism’s Global Dominance: Capitalism is now the sole surviving economic system worldwide, with no viable alternatives (like communism) left. However, it takes two distinct forms: liberal meritocratic capitalism (e.g., the U.S., Western Europe) and authoritarian or political capitalism (e.g., China, Russia), where the state plays a dominant role in the economy.
- Inequality and Instability: Both forms of capitalism generate rising inequality, but in different ways. Liberal capitalism creates inequality through market forces and technological change, while authoritarian capitalism concentrates wealth among political elites. This inequality fuels social unrest and political polarization.
- The Future of Capitalism: Milanović argues that capitalism’s survival depends on its ability to adapt and reform. Without addressing inequality, environmental degradation, and democratic backsliding, capitalism risks undermining its own legitimacy, potentially leading to authoritarianism or systemic collapse.
Buch Democracy 2013
Against Elections

David Van Reybrouck

Let’s face it: Representative democracy is in crisis. Around the world, citizens are losing trust in their political leaders and representatives. Elections nowadays frequently result in populists – or, more accurately, demagogues – emerging victorious, who make extravagant promises. This should make us question whether our political systems are functioning properly. David Van Reybrouck offers a compelling alternative.
- The Limits of Representative Democracy: Van Reybrouck argues that elections and political parties have become ineffective, reducing democracy to a periodic ritual where citizens delegate power to elites. This system often leads to short-termism, polarization, and a disconnect between rulers and the ruled.
- Sortition as an Alternative: He advocates for sortition (random selection of citizens) to replace or supplement elections. Randomly selected citizens, like in ancient Athenian democracy or modern citizens’ assemblies, can deliberate more thoughtfully, reduce corruption, and better represent diverse perspectives.
- A Hybrid Democratic Model: The book proposes a mixed system combining elements of representative democracy (for efficiency) with deliberative democracy (for legitimacy). This includes citizens’ assemblies, participatory budgeting, and other forms of direct democracy to re-engage people in decision-making.