The episode delves into how inclusive institutions—those that protect rights, enforce laws fairly, and allow broad participation in the economy—are key to long-term growth. In contrast, extractive systems benefit a few at the expense of many, stifling development. Hernando de Soto’s work in Peru highlights how burdensome regulations push the poor into informal economies, preventing them from building wealth. His advocacy led to meaningful reforms and influenced global economic policy. The discussion also touches on how simplifying legal processes and ensuring fair access can unlock opportunity for all.