Weak property rights let insulated leaders expropriate for themselves and allies.

Evidence

On the other hand, property rights tend to be less protected in developing countries, and insulated leaders may have more latitude to pursue policies which favor the leader himself and its close allies. The potential for “expropriation,” broadly defined, is larger in developing countries. — Philippe Aghion, Alberto Alesina, and Francesco Trebbi, Endogenous Political Institutions, 157

Categorization

• XREF: Echoes Olson’s stationary-bandit argument and Acemoglu’s work on extractive institutions.