Why nations fail chapter 5

But this sugary economy was organized around slavery. The Public Sector is therefore, along with the financial Sector, a kind of extractive elite.

Poor countries are poor because they have "extractive institutions" or economic and political institutions that restrict economic gains to an elite political class and ensure that wealth is redistributed "upward," impoverishing the poor.

After making the basic argument, Chapter 2 discusses a number of theories that do not work, including the idea that geography is a determining factor.

Examples of extractive institutions include the economies of Mexico, Somalia and North Korea. They strongly assert that the gap between rich and poor is motivated by institutional structures of countries. Here, they note that these extreme differences are not emerged by geographical or cultural differences, and add that they were not existing before the Second War.

The first one is a review by Francis Fukuyama about the book but more precisely about the notions of extractive institutions and conversely, inclusive institutions.

In this book, J. This type of institutions generally generates innovations.

Why Nations Fail - Chapter 5 Summary

They do not have property rights and contracts. My last point is about the political power in China and the liberty of the people.

I would like to finish here with the case of China. As Fukuyama describes with the Roman Empire, the System was clearly extractive since the power was in the hands of the emperor.

He wonders why citizens from Ethiopia earn ten times less than ones from Colombia where as at the same time, citizens from Colombia earn only four times less than ones from Sweden.

Eventually, these extractive markets drag the country to the poverty. Another reason is that the King, who also occupied the function of high priest at the time, was responsible for all the sacrifices that were supposed to bring rain, good harvest and prosperity to the city.

The fourth and last society studied by Acemoglu and Robinson is the Maya and their City-States that existed about a thousand years ago. In initial the Spaniards failed to establish this model due to sparsely settled and uncoordinated structure of tribes.

Why Nations Fail: The Origins of Power, Prosperity, and Poverty Summary & Study Guide

The only way for poor countries to develop is for them to throw off their extractive institutions and move in an inclusive direction.WHY NATIONS FAIL D. ACEMOGLU & J. A.

ROBINSON Seminar Paper CHAPTER 5 “I’VE SEEN THE FUTURE, AND IT WORKS”: GROWTH UNDER EXTRACTIVE INSTITUTIONS What Stalin, King Shyaam, the Neolithic Revolution, and the Maya city-states all had in common and how this explains why China’s current economic growth cannot last. Why Nations Fail: The Origins of Power, Prosperity, and Poverty Summary & Study Guide Daron Acemoğlu This Study Guide consists of approximately 28 pages of chapter summaries, quotes, character analysis, themes, and more - everything you need to sharpen your knowledge of Why Nations Fail.

Chapter 13 – Why Nations Fail Today In the year Zimbabwe held a national lottery for everyone who had kept more than Zimbabwean dollars in their. Start studying Why Nations Fail Chapter 4,5,6.

Learn vocabulary, terms, and more with flashcards, games, and other study tools.  Why Nations Fail by James A. Robinson and Daron Acemoglu a b o o k r e v i e w INTRODUCTION Why Nations Fail is a non-fiction book by James A. Robinson and Daron Acemoglu which is based on the views and insights from the economic history of each country to be able to answer why nations grow.

This Study Guide consists of approximately 28 pages of chapter summaries, quotes, character analysis, themes, and more - everything you need to sharpen your knowledge of Why Nations Fail.

Chapter 4 begins by recounting that the Black Death killed around half of Europe's population in the latter.

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Why nations fail chapter 5
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