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There is an abundance of studies postulating that colonialism explains the character of the developing world. For instance, in their seminal paper aptly titled "The Colonial Origins of Development: An Empirical Investigation" (2000), Daron Acemoglu, Simon Johnson, and James A. Robinson advance the audacious claim that in regions where the environment was conducive to settlement, Europeans built inclusive institutions promoting property rights, innovations, and long-term development. This was unlike settler colonies in places where the climate was inhospitable to large-scale settlements, where extractive institutions were established to achieve short-term gains. Imposing rent-seeking institutions to extract resources for personal enrichment was deemed a practical alternative to maneuvering the harshness of an unwelcoming environment. Many have raised objections to this thesis on methodological grounds. But even critics assume that colonialism has immense explanatory power. Research, however, is more fruitful when scholars assess development over a longer period. Prior to colonial rule, countries already had institutions of their own, so it is appropriate to suggest that precolonial institutions are a channel through which we can understand challenges in the developing world.

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