WHY NATIONS FAILS

James robinson

Why nations fail by james robinson is a sweeping attempt to explain the reason why some countries are
poor and others prosperous.he starts with a comparison of north and south korea in terms of
technological advancements going further with the differences between rich and poor countries that rich
countries have more educated,healthy people,have better infrastructure,government and public services
than the poor countries.the reason for these differences is not their access to resources but it is the
organization of these countries which really matters. In rich countries the organization is such that it
creates incentives and oppurtunities for the people but in poor countries it is such that it impedes peoples'
incentives.the kind of organization in rich countries brings innovations which lead to technological change
and this is the main difference between  the two.
James robbinson takes the graphic example of mexico and america which are only one border apart.even
in todays' glum economic climate average american is seven times as prosperous as the average
mexican.what explains such a stupefying disparity?his answer is simple:the institutions.he is impatient
with traditional social-science arguments for the persistence of poverty which variously chalk it up to bad
geographic luck,hobbling cultural patterns,or ignorant leaders and technocrats.instead he focuses on the
historical currents and critical junctures that mold modern policies:the process of institutional drift that
produces political and economic institutions that can be either inclusive_focused on broad distribution of
power,productivity,education,technological advances and well being of the nation as a whole; or
extractive_ bent on  grabbing wealth and resources away from one part of society to benefit another.he
gives example of the two richest men one of america bilgates and the other carlos slim of mexico that
how bilgates innovation brought incentives for others and how  monopolies blocked
others incentives.it explain how innovation leads to inclusive society and creating monopolies leads to
extractive society.this is how thomas jafferes patent law brought prosperity in america giving everyone
equal oppurtunity through broad distribution of political powers and the state was strong to enfore the law
leading to protection of individuals' rights.
His argument is that the modern level of prosperity rests on political foundation.according to him the
economic incentives are embeded in political society indeed they stem from political processes.prosperity
is generated by investment and innovations.for the polity to provide such reassurance two conditions
have to hold :power has to be centralized and institutions of power have to be inclusive.then and only
then a nation can prosper. Thus the ultimate thing is  reconciling democracy with creating a strong state
which are often contradictory as in case of greece where this reconciliation problem impedes
its prosperity.it all depends on the political institutioms which can bring about projects to ensure broad
distribution of political power and law enforcement making a strong state.

Refrences:

https://amara.org/en/videos/7xBTXeWEWB5E/en/826417/