Determinants of growth: capital, institutions and the lived world

Contemporary economic growth theory indicates that classical factors such as physical and human capital are insufficient to fully explain differences in national wealth. This article explores the role of so-called deep determinants, focusing on the importance of inclusive and extractive institutions and the concept of the lived world. The analysis goes beyond the simplistic framework of the Solow model, examining how the rules of the game, property rights, and distributional conflicts influence the efficiency of resource allocation. Through case studies of countries such as Poland, China, and Venezuela, the text demonstrates the complexity of development processes and the need to implement pragmatic reforms. It offers a comprehensive look at the mechanisms for building sustainable prosperity based on stable institutional, social, and political foundations.