Investing in Political Inclusion, with Dr. Hermann J. Stern

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What if the secret to national wealth isn’t faster growth or smarter tech, but a fairer invitation to participate? We sit down with Dr Hermann Stern to unpack the Prosperity Gate—a striking pattern in World Bank data showing that most countries grind along a poverty “brick” until they expand political inclusion enough to trigger a steep rise in income per capita. Once through the gate, each step toward broader participation correlates with bigger gains, reframing prosperity as the outcome of social invention and open institutions rather than luck or resources.

Together we trace the evidence: how universal schooling, healthcare access, labour standards and the right to start and scale a business create the conditions for innovation to spread. Hermann explains why outliers like oil states can mask the rule, and why countries without resource windfalls—think the Baltics—outperformed larger, richer neighbours by betting on inclusive rules instead of extractive control.

And as if that wasn't enough... for sustainability and ESG, Herman offers a candid diagnosis. Expecting firms to act like saints collides with fiduciary duty; the real lever is the societal framework that aligns private incentives with public goals.

The takeaway is clear and hopeful: inclusion is not charity, it’s a growth strategy. Countries can backslide when participation narrows, but they can also surge ahead when people feel secure enough to learn, spend and build. Have a listen!

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