The article investigates why rich countries don't invest more in poor countries. They looked at different reasons like differences in how well countries are run and problems in the financial markets. The study found that from 1970 to 2000, the main reason was poor institutional quality. If a country like Peru improved its institutions to be like Australia's, it could attract four times more foreign investment. This shows that having good institutions is crucial for long-term development, and foreign investment can help countries grow.