The concept of path dependence reveals how deeply historical events and long-established institutions shape the potential futures of nations in profound ways. Once these institutions take root, they often set a trajectory that can feel not only predetermined but also inescapable for the nation involved. According to path dependency theory, when prior institutions serve society effectively, they create a conducive environment for economic growth, initiating an upward spiral of social progress through cumulative causation that benefits all. Conversely, when a society’s institutional framework is formed from a protracted history characterized by limiting practices and deeply entrenched restrictions, the future often becomes ensnared in a detrimental cycle of cumulative causation, leading to stagnation and ultimately resulting in diminished income and opportunities for achievement.