Governments in some democracies target benefits to small groups at the expense of many using policies like subsidies. Why do some governments redistribute more narrowly than others? The willingness of elected leaders to selectively target economic benefits to business depends on how politicians are elected and the geographic distribution of economic activities within a country. Based on interviews with government ministers and bureaucrats, as well as parliamentary records, industry publications, local media coverage, and new quantitative data, the book demonstrates that government policy-making can be explained by the combination of electoral institutions and economic geography. Specifically, it shows how institutions interact with economic geography to influence countries' economic policies, including industrial subsidies and agricultural subsidies, and international economic relations. Identical institutions have wide-ranging policy effects depending on the context in which they operate. As a result, no single political institution is a panacea for pressing issues like income inequality, international economic conflict, or minority representation.