Pritchett's Theory, developed by economist Lant Pritchett, focuses on the relationship between economic growth and institutional quality. It suggests that improvements in economic performance are often hindered by weak institutions, which can lead to inefficiencies and corruption. The theory emphasizes that simply increasing resources or investments is not enough; strong, effective institutions are essential for sustainable growth. The theory also highlights the importance of adaptability and flexibility in policy-making. Pritchett argues that rigid adherence to established practices can stifle innovation and responsiveness to changing economic conditions. By fostering a dynamic institutional environment, countries can better harness their potential for growth and development.