To the one who is interested in
history and want a have a glance on it, must read the book "Why Nations Fail".
After reading this book, one will find himself in a position to have a minimum
structure of geographical lays of the land in his mind. From the American continent
to the Australian one, this book elaborated their history in a brief account.
Though the book is not about the history or geographical patterns of the
present world, it gives you a sound understanding of these approaches as well.
The Book is aimed to elaborate a
theory for a sound understanding of poverty and prosperity of the current
nation-states. Why is it so, that Great Britan and United States of America are
prosperous enough to give a standard living to those who are not well off?
Here, it is pertinent to keep in mind that the theory followed the comparative
developmental approach. So, those who are poor in Britan and USA are relatively
richer to those in Sub-Saharan Africa poor masses. The theory also strengthen
the argument that Political development leads to economic development.
The terminologies that are
mentioned in this book are as follow: extractive economic and political
institutions, inclusive economic and political institutions, critical
Junctures, Small differences, vicious circle, virtuous circle and iron law of
oligarchy. By Extractive institutions they mean the institutions that extract the
wealth and power from the majority and concentrate it in the hands of the few-elite.
The inclusive institutions are the one that promote the values of pluralism and
encourage the participation of the majority, both in economic and political
field. The defining movements in the history of a nation are described in words
"critical junctures", for example the Glories Revolution. The small
differences are the one that were not important at that time but has a great
impact upon the history of the nation; Like, Bostwana Chieftains movement
against the Mighty Rhode's of South African Company. The Vicious and Virtuous
circles are the feedback mechanism in different sets of institutions. Iron law
of oligarchy implies that when colonizers left, the new class of elite worsen
the lives of their fellow countrymen.
The theory states that the
prosperity and poverty of a nation depends upon the institutions of that nation.
If their institutions-political and economic-are inclusive in nature, there
will be prosperity. On the other hand, if their institutions are extractive in
nature, the majority will live under poverty. If the political institution is
extractive in nature and economic institution is inclusive then it will leads
to the creative destruction. As more people will be well off economically, they
will challenge the absolutism of political system. Hence, conflict will arose
and it can leads to both the possibilities, either, inclusive institutions will
prevail or the extractive one. Those countries that are developed today had
faced the conflict and in their cases inclusivity prevailed-for example Great
Britan.
Throughout reading this book, one
will find the writers biased toward capitalism, liberalism and democracy. In
spirit, I am not against any one of them. Still, I can't accept their approach
which mean only these values guarantee prosperity. As the book concluded that
China will end up as a disaster, if, it not changed the extractive political
institution.
The book, somehow, cleared my
misconception regarding the Unions. As I was of the view that these Unions were
the tools in the hands of few aiming to hinder the efficiency of an
institutions. I believed so, because in majority of the cases of student unions
were influenced by political parties. The political parties provided them
funds, in return they became their subordinates. Though, if one can assure that
they will be financially independent, nothing better can safeguard the
interests of the community.
