Why Do Nations Fail

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Why Nations Fail is a well penned book, which wrestles with a large question that many ponder everyday- why are some nations rich, while others are poor, divided by wealth and poverty, health and sickness, and food and famine? The authors, Daron Acemoglu and James Robinson, explain that the answer to this question is that modern day political and economic institutions determine economic success. Political institutions can be split into two groups- inclusive and exclusive. Inclusive political institutions, which are key to success, include a broad distribution of political power. This power is limited, by means such as elections and constitutions. Inclusive economic institutions encourage property rights and contracts, as well as promote starting …show more content…

Acemoglu shares that he worries that America’s increasing gap in economic inequality will eventually disrupt the equality of America’s institutions as well. He states, “The real problem is that economic inequality, when it becomes this large, translates into political inequality.” If a single person or group can fund an entire campaign, it can be expected that the elected official will be reluctant to listen to and work with those who have conflicting opinions. Since elected officials play a large part in determining economic policy, it is crucial that they are elected fairly, and that they will represent the views of the nation as a whole, and not just a certain interest group that happens to fund their campaign. It was also interesting reading how America got where it is today, as far as the political system. The authors explain, “Countries such as Great Britain and the United States became rich because their citizens overthrew the elites who controlled power and created a society where political rights were much more broadly distributed, where the government was accountable and responsive to citizens, and where the great mass of people could take advantage of economic opportunities”. It makes me wonder what caused the USA to go from being a very equal country politically, to potentially being very biased

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