To explore how a country or economy transitions from poverty to prosperity, this chapter proposes a theoretical analytical framework based on an institutional perspective that reveals the more essential factors behind economic growth from two dimensions: economic institutions and political governance. The combination of cohesive political governance and an open-access economy is the decisive factor for a country to move from poverty to prosperity. Political governance is defined as “cohesive” if it can establish a stable social order, reach social consensus, form unified collective action, and promote the efficient implementation of policies. An economic system is defined as “open-access” if, under a set of institutional arrangements, various economic entities can participate in diverse economic opportunities voluntarily and relatively conveniently. The model of an economy’s political governance—whether multi-peak or single-peak—has no significant impact on sustained economic development, and the crucial factor lies in achieving cohesive governance.