In their brilliant book, Why Nations Fail: The Origins of Power, Prosperity and Poverty, Daron Acemoglu and James A Robinson recount a story from ancient Rome that is relevant even today: “ 934 more words
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Why Nations Fail: The Origins of Power, Prosperity, and Poverty
By Daron Acemoglu and James Robinson
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♦ Nations fail today because their extractive economic institutions do not create the incentives needed for people to save, invest, and innovate.
Are some countries determined to be poor? Are their trajectories set in stone? Are rich countries destined to always prosper?
Definitely not. But for the past 150-200 years or so, roughly the same countries have remained poor in terms of GDP. 1,273 more words
Government, Geography, and Growth: The True Drivers of Economic Development by Jeffrey Sachs in Foreign Affairs
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This tale sounds good, but it is simplistic.
1. Was the message convincing – why or why not?
2. How will knowledge of inclusive and extractive political institutions be of practical use for you in the international development field? 151 more words
The people who suffer from the extractive economic institutions cannot hope for absolutist rulers to voluntarily change political institutions and redistribute power in society. The only way to change these political institutions is to force the elite to create more pluralistic institutions.