The Institutional Trilemma: Balancing Inclusiveness, Sustainability, and Economic Performance

El Maachi et al. (2025) highlight the positive effects of inclusive institutions on sustainability, but their statistical approach could be deepened by explicitly modeling trade-offs and synergies. This idea proposes constructing a dynamic systems model—integrating governance indicators, economic metrics, and sustainability indices—to simulate how different institutional configurations (inclusive, extractive, hybrid) perform over decades. The study would use machine learning and scenario analysis, drawing inspiration from Nian et al. (2021, 2023) on environmental feedback loops. This goes beyond single-outcome studies by clarifying the complex, sometimes contradictory, paths toward long-run prosperity, offering actionable insights for policymakers seeking to avoid the pitfalls of “dirty” growth or extractive governance.

References:

1. Institutions as a Fundamental Cause for Long-Run Sustainability. Soukaina El Maachi, R. Saadane, Abdellah Chehri (2025). Journal of Risk and Financial Management.
2. Temporary prosperity or sustainable development: the long-run impact of developing pollution-intensive industries. Hongyu Nian, Zhiwei Xu, Haitao Yin (2023). Macroeconomic Dynamics.
3. Temporary Prosperity or Sustainable Development: The Long-Run Impact of Developing Pollution Intensive Industries. Hongyu Nian, Zhiwei Xu, Haitao Yin (2021). Social Science Research Network.