Extractive institutions are systems that enable a small group of people to control resources and wealth, often at the expense of the larger population. These institutions typically prioritize the interests of elites, leading to economic inequality and limited opportunities for the majority. Examples include oppressive governments and monopolistic businesses that restrict competition and innovation. In contrast to inclusive institutions, which promote broad participation and equitable resource distribution, extractive institutions hinder social mobility and economic growth. They can manifest in various forms, such as corruption, political repression, and lack of property rights, ultimately stifling development and prosperity for the general populace.