In Chapter 9 of "Why Nations Fail," authors Daron Acemoglu and James Robinson explore the role of inclusive political institutions in the success or failure of nations. They argue that inclusive political institutions, which give all members of society a say in decision-making and provide protections for individual rights, are key to a nation's prosperity. In contrast, extractive political institutions, which concentrate power in the hands of a narrow elite and exclude the majority of citizens from political participation, hinder development and perpetuate poverty.
The authors examine the historical development of political institutions in a number of different countries, including the United States, Great Britain, and the Ottoman Empire. They show how the institutions that emerged in each of these places were shaped by the interactions between the political elite and the broader population. In the United States and Great Britain, inclusive political institutions emerged as a result of a long and often contentious process of negotiation between different groups, including the landed aristocracy, merchants, and ordinary citizens. In contrast, the Ottoman Empire never underwent a similar process of negotiation, and as a result, extractive political institutions remained in place for centuries, hindering the country's economic development.
Acemoglu and Robinson also discuss the importance of property rights and the rule of law in promoting inclusive political institutions. They argue that when property rights are well-defined and protected, individuals and businesses have incentives to invest and innovate, which leads to economic growth. Similarly, when the rule of law is strong, individuals and businesses can trust that their rights will be respected, which creates a stable and predictable environment in which to operate. Inclusive political institutions are also crucial for protecting minority rights and promoting social inclusion. By giving all members of society a stake in the political process, inclusive institutions help to ensure that the needs and concerns of marginalized groups are taken into account, fostering a more inclusive and equitable society.
Overall, Acemoglu and Robinson make a compelling case for the importance of inclusive political institutions in driving economic development and promoting prosperity. They argue that when political institutions are inclusive, they create a virtuous cycle in which economic growth and political participation go hand in hand, leading to a more prosperous and stable society. Conversely, extractive political institutions create a vicious cycle in which economic stagnation and political exclusion reinforce each other, leading to poverty and instability. Understanding the role of political institutions in shaping a nation's success or failure is crucial for policymakers and leaders seeking to promote development and improve the lives of their citizens.
New York Times Bestseller Why Nations Fail Short Summary Essay Example
The authors introduce the idea of institutional drift 108-9 as mechanism that leads to differences in institutional evolution and thus outcome. While it is thought that just 2 to 3 percent of residents in the Ottoman Empire were educated, the ratio was 40 to 60 percent in the UK. In the Middle Ages, Europe transitioned away from slavery to a system of feudal serfdom. These institutions would have profound implications not only for economic incentives and prosperity, but also for who would reap the benets of prosperity. The authors are saying that citizens need incentives to help build a nation.
Why Nations Fail Chapter 11: The Virtuous Circle Summary & Analysis
By 1800, 60% of European men and 40% of European women were literate. After Europeans first settled South Africa in 1652, they barely interacted with the native Xhosa people until the 19th century. Most land was caught in archaic forms of property rights that made it impossible to sell and risky to invest in. To help crush the rebellion, the British built a railway through the South. Teachers, instead of being instructors, become labour recruiters. Eventually, however, the original settler company The Virginia company back in England realized the only way colonialism was going to work was to provide incentives for the settlers — So they offered them land in return for work.
The slave trade and British colonial policy are chiefly responsible for creating extractive institutions in Sierra Leone. Wuhan Diary PDF Sea of Tranquility PDF The Murder of Roger Ackroyd PDF Mind Reader PDF The Wisdom of Psychopaths PDF Killers of a Certain Age PDF Norwegian Wood PDF They discovered that the Virginia Company had nominated Smith to be a member of the ruling council that was to govern Jamestown. This cannot be imposed from above, but seems to have to become from below. Europeans deliberately reversed South African growth in order to eliminate competition from African farmers and create a supply of cheap labor for the mines. Acemoglu and Robinson will argue that Lewis correctly describes inequality in developing countries but misunderstands its source.
Why Nations Fail Chapter 12: The Vicious Circle Summary & Analysis
The United States utilizes inclusive policies while Mexico has been using extracting policies. Alaric was both a ferocious enemy and an ally, so much so that in 405 he was appointed one of the senior-most generals of the Roman army. Opposition to innovation was manifested in two ways. For instance, Britain did so through the Glorious Revolution. Though they, too, held Aetius hostage, they later fought alongside him in a civil war. There were major improvements in transportation, metallurgy and steam power, mechanization of textile production and the development of factories to produce these manufactured textiles.
Similarly, when gold was discovered in Australia, elites wanted to sell control to a monopoly. Bugaric, Bojan, and Alenka Kuhelj. Many social scientists think of economic policy as the government regulating a free market that already exists. They were based not on consensus but, rather, were the result of intense conict as dierent groups competed for power, contesting the authority of others and attempting to structure institutions in their own favor. In the East, they were also connected in such an economy, but he demand for the agricultural goods came from the West.
Why Nations Fail Chapter 10: The Diffusion of Prosperity Summary & Analysis
This decimated the SL economy, but when it came to a choice between consolidating power and economic growth, the consolidation of power won out. The Relevance of Social Policies for Democracy: Preventing Autocratisation through Synergies between SDG 10 and SDG 16. Robinson argue that institutional differences are responsible for the profound inequalities between nations today. As a result, the profits from Australian mining were split relatively widely throughout the population. During both, businessmen pushed for inclusive economic institutions while broad coalitions of different groups pushed for inclusive political institutions.
Why Nations Fail: The Origins of Power, Prosperity, and Poverty
However, because the farmers themselves receive only a fraction of the world market price of the crop, they had no incentive to maintain, let alone invest in, cotton harvesting machinery. To that end, European colonization and the slave trade were particularly impactful around the world: they help explain why inclusive and extractive institutions formed in different nations, and these institutions later determined how these nations responded to the Industrial Revolution. While most social scientists blame this inequality on geography, culture, or incompetent leadership, Acemoglu and Robinson think the problem is political. The theory developed by Acemoglu and Robinson is helpful in terms of understanding the causes and evolution of both extractive and inclusive institutions in various countries of the world. The most important of these events was the Industrial Revolution, which started in 18th century England and quickly spread around the world although, the authors argue, only to countries that already had inclusive economic institutions. The continuum of innovation that increases effectivity and eliminates exact economic areas is creative devastation.
Why Nations Fail by Daron Acemoglu and James A. Robinson Plot Summary
Why Nations Fail: The Origins of Power, Prosperity, and Poverty by Daron Acemoğlu, James A. WE WILL ARGUE that to understand world inequality we have to understand why some societies are organized in very inecient and socially undesirable ways. This foundation allowed the U. The outcome was a tremendous economic increase — shocking on closer examination because you might not demand such an increase to occur in exploitative economic organizations. Countries only achieve economic growth when the masses break this cycle of elite domination. But, for those people interested in the economy of nations, then this is a really good read.
However the 17th century sugar plantations in the Caribbean served as the tipping point driving international slave trade. Xhosa people started trading with Europeans, building better houses, and irrigating and cultivating their soil. This is why, after the Glorious Revolution, Britain slowly but surely enfranchised the rest of its population. They were restored by area taxes. What runs in a realm alike to the cultural hypothesis is the ignorance conjecture. Growth will not be sustained in China. The signature of the Magna Carta in 1215 had set an embryonic British Parliament.
This theory clearly states that our leaders are too ignorant to choose what policies to impose and implement. Indeed, Acemoglu and Robinson note that Roosevelt might have tried to overrule Congress next. In many cases, different choices or slightly different outcomes can make the difference between democracy or authoritarianism. But actually, government policy created it. Thus, the rule of law is another example of how inclusive institutions tend to become more inclusive over time.
