Not really disagreeing with you, but I think it is important to remember that these governments or companies are comprised of individuals following their individual incentives. Those incentives cover a huge range of things beyond simple financial gain.
So while 10% of something 1000 times bigger is definitely better than 50% of the base, that isn't really the issue. It is not as though in an extractive government the loot is divided at the end of the year according to rank or something. It's a bit more catch-as-catch-can.
Basically, and I guess this is what the book is arguing, in the absence of the kinds of institutions that enforce or engender inclusive policies and practices, people do whatever they can get away with.
So while 10% of something 1000 times bigger is definitely better than 50% of the base, that isn't really the issue. It is not as though in an extractive government the loot is divided at the end of the year according to rank or something. It's a bit more catch-as-catch-can.
Basically, and I guess this is what the book is arguing, in the absence of the kinds of institutions that enforce or engender inclusive policies and practices, people do whatever they can get away with.