Why Nations Fail

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Colegio de Estudios Superiores en Administracion
Sergio Uribe
Gobierno y Decisiones
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Jessica Bluhum Monroy

When the two American economist, Daron Acemoglu and James Robinson wrote Why Nations Fail: The Origins of Power, Prosperity, and Poverty, they simply tried to give society and answer that everyone does but no one seems to know the explanation: why some nations fail but other are successful? As we saw on the last reading of Huntington, political institutions are the primary responsible for the economic growth and success in a nation, in the book Political Order in Changing Societies by the author Samuel P. Huntington is clearly expressed that countries like Great Britain and the United States had adaptable coherent political institutions as well as effective bureaucracies, organized political parties and a high degree of participation in public affairs. In the book Why Nations Fail its also expressed that this two countries have a successful economic state because people that live in this countries worried for the common benefit and fight for the economic and political rights that can lead them to a better situation, by fighting against the elites in a nation and avoiding this elites to control and take advantage of the money they create a society with appropriate politic and economical rights and this way they prevent that the nation fail and be poor. Why Nations Fail explain the difference between the inclusive and extractive institutions, nations fail when their institutions are extremely economical and political extractive, when a nation has a power distribution tight, not very open, this is when nations fail, because this power is being taken by a small group of people and they are making them rich and rich thanks to all society. This unjust situation doesn’t happen when the political institutions have a well-distributed power and are pluralist in terms of having a close connection with the inclusive institutions; these way nations will have a continued growth. Acemoglu and Robinson explain as an example that China will eventually stop growing due to their institutions being extremely extractive, and the nations of the west part of the world will continue to grow because of the contrast on our institutions, here in the west institutions are much more inclusive. This is not something we can demonstrate now days since many western nations are in a very difficult crisis and Chinese and other eastern nations that also have extractive institutions are not. But apart for the present the world is living both authors of the book ensure that the nations that are centralized and pluralist are inclusive institutions if these two conditions are not present then a nation will fail and be a nation with extractive institutions. Understanding the difference between inclusive and extractive institutions and what they can make in a nation we have to understand also that in some nations some decisions and things work in an inclusive way and others as an extractive, and also in different levels. Also there is an important factor that can lead a nation to be succesfull or to fail, this factor is the talent and innovation, in the first chapter of the book is explained how in The United States in the 19th century there where many inventors such as Thomas Alva Edison, and giving him as an example and many others he explain that they where not part of the elite group in a nation, instead of that they where sometimes rich sometimes poor and had different tipes of jobs starting from farmers to lawers, talent was very well-distributed, and nations have to guarantee a special support by different ways such as the laws or education. But also there is an important factor that can affect a nation and is called the creative destruction, this term can be present in a nation where power is being distributed and have inclusive institutions, creative destruction aslong with innovation can lead...
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