Friedman why nations fail

The blog based around the book. Please click here to return to the main ReviseSociology home page! Lack of Property Rights which serves as a disincentive for wealth accumulation and hard work in North Korea. Forced Labour, particularly of students used for cotton plantations in Uzbekistan 3. Tilted Playing Grounds of South Africa whereby black population gets preferential treatment in the job market and state bounties 4.

Big Men Get Greedy like they did in Egypt where they virtually controlled all the sources of wealth creation 5. Elites Block New Technology, a very telling example of Austria of s which refused laying of railway lines fearing that it would create conditions like French Revolution. On the other hand UK introduced railways at the same time not only at home but also in her colonies and reaped the benefits 6. Law and Order, absence of which as witnessed in Somalia results in civil war and deterioration in living standards 7.

Weak Central Government which is unable to control non state actors who create difficulties in provision of civic amenities and promulgation of property legislation-case of Columbia 8. Bad Public Services witnessed in the Peruvian provinces 9. Political Exploitation by the Iron law of oligarchy which is in operation in Bolivia Fighting over Spoils-Sierra Leone, constant struggle for power for getting the spoils. Interestingly while the authors have given examples of ten cities to illustrate their theory of state failure due to the interplay of extractive institutions and predatory elites, they stress for an effective centralized state to have a prosperous economy which is dependent upon law and order, an effective legal framework, a fair disputes resolution mechanism and provision of basic public goods.

We can say that extractive institutions are the sins of society. This is an excellent summarizing of the whole book. At least it give a sense why nations choose the road of prosperity and impoverishment. Thanks to the authors giving me insights.

Thanks very much for the comment, very useful examples to illustrate and certainly something to think about! Given that local authorities has the competence to do so.

Their behaviour and effect on a society is pretty much in line with the institutions already there. No TNC could interfere when Norway decided to more or less nationalise petroleum. In Nigeria, on the other hand, there are no inclusive institutions, and any kind of rules can be ignored if it suits the ruler.

Something like that. This site uses Akismet to reduce spam. Learn how your comment data is processed. North and South Korea at Night. Charles Taylor. Child Cotton Labourers in Uzbekistan. Fighting over Spoils-Sierra Leone, constant struggle for power for getting the spoils Interestingly while the authors have given examples of ten cities to illustrate their theory of state failure due to the interplay of extractive institutions and predatory elites, they stress for an effective centralized state to have a prosperous economy which is dependent upon law and order, an effective legal framework, a fair disputes resolution mechanism and provision of basic public goods.

Hey thanks, I agree, extraction tends not to work for everyone! So wonderful summary, teach me a lot about the book, thank you so much. Hey thank you for your kind words.

Pingback: Running into Trouble with Institutions? Excellent summarizing. This gave us the good knowledge about the book. Leave a Reply Cancel reply. This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. The New Class War. Michael Lind. If You Can Keep It.

Eric Metaxas. Liberal Fascism. Jonah Goldberg. The World. Richard Haass. Evil Geniuses. Kurt Andersen. Political Tribes. Twilight of Democracy. Anne Applebaum. The System. Robert B. The Ascent of Money. Niall Ferguson.

Legacy of Ashes. The Fourth Turning. William Strauss and Neil Howe. Money for Nothing. Thomas Levenson. World Order. Henry Kissinger. The Storm Before the Calm. George Friedman. The Federalist Papers. The Next Years. Gerald F. The New Map. Daniel Yergin. James Suzman. Suicide of the West. Amy Klobuchar. The Narrow Corridor. Robinson and Daron Acemoglu. The History of Money. Jack Weatherford. The Price of Peace.

Zachary D. Rise to Globalism. In Talking to Canadians, Rick Mercer finally turns the spotlight on himself—revealing how he went We are only just beginning to understand the deep impacts of racial resentment—including its fatal In new book, economists Daron Acemoglu and James Robinson assert that above all else, political institutions — not culture or natural resources — determine the wealth of nations.

It is equally at home in Asia, Africa and the Americas. It is fair to left and right and every flavor in between. It illuminates the past as it gives us a new way to think about the present. It is that rare book in economics that convinces the reader that the authors want the best for ordinary people.

It will provide scholars with years of argument and ordinary readers with years of did-you-know-that dinner conversation. It has some jokes, which are always welcome.