Politics: inclusive vs extractive institutions

Self-tutoring about societal organization: the tutor mentions inclusive vs extractive in terms of institutions.

Today I read an article mentioning that a certain country’s institutions are extractive; I’d not heard that terminology before. I decided to look it up.

Politically speaking, extractive institutions are typically poorly defined, but exist as tools for use by an elite class to magnify their wealth and power by extracting it from the working class. Inclusive institutions are opposite: they tend to be well-defined, and everyone is subject to their rules.

Put simply, in a society with inclusive institutions, everyone has to follow the law.

Source:

US Bureau of Labor Statistics