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Why Nations Fail

Posted: Thu Jan 30, 2014 5:31 pm
by mdsimpson92 ... .html?_r=0
Co-authored by the M.I.T. economist Daron Acemoglu and the Harvard political scientist James A. Robinson, “Why Nations Fail” argues that the key differentiator between countries is “institutions.” Nations thrive when they develop “inclusive” political and economic institutions, and they fail when those institutions become “extractive” and concentrate power and opportunity in the hands of only a few.

“Inclusive economic institutions that enforce property rights, create a level playing field, and encourage investments in new technologies and skills are more conducive to economic growth than extractive economic institutions that are structured to extract resources from the many by the few,” they write.

“Inclusive economic institutions, are in turn supported by, and support, inclusive political institutions,” which “distribute political power widely in a pluralistic manner and are able to achieve some amount of political centralization so as to establish law and order, the foundations of secure property rights, and an inclusive market economy.” Conversely, extractive political institutions that concentrate power in the hands of a few reinforce extractive economic institutions to hold power.

Re: Why Nations Fail

Posted: Sat Feb 01, 2014 3:07 pm
by Metacrock
that sounds like a great study. I think it's very important to consider those kinds of ideas. sounds right to me.

Re: Why Nations Fail

Posted: Sun Feb 02, 2014 11:47 am
by mdsimpson92
One thing I found interesting is that it said that unless China more fully developed rule of law and property rights, it will eventually stagnate in a way similar to the Soviet Union. However, I think that they may well get by by exploiting Western technology and methods and modify it to their personal use. Then again, I can already see trouble on the horizon...