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This paper presents a rational reconstruction of Kropotkin's view on human nature, institutional change and economic development. Kropotkin shows that mutual aid among animals as well as in human society is far more important than recognized by contemporary individualist interpretation of Darwinism on society. His major contribution to political economy is that he offers an endogenous model of why institutions exist. However, his biological determinism and ethical naturalism imply that he disregard historical context, which leads him to de facto apply the perspective of historical idealism. The rise of the modern state, for example, he explains by the spread of the "idea of the state" and not by the economic development. Adapted from the source document.