The book explains a great deals about why political institutions shape the economic institutions hence the distribution of resources in the society. Poor countries are poor because political powers are in the hands of few elites. The elites do not like changes or creative destruction (new innovation, new way of doing things) because it will disrupt their power in politics and business. Therefore, there will be no technological change in a country which improves long term productivity. The country will remain stagnant. How to change that? You must read this book. Its an excellent piece for anyone.