WHY NATIONS FAIL By Daron Acemoglu and James A. Robinson (CHAPTER 1)

 

The masterpiece by James A. Robinson and Daron Acemoglu is titled "Why Nations Fail." This book offers a solid and thorough analysis of those elements. This has the potential to either bring about national prosperity or national impoverishment. The first chapter of the book "Why Nations Fail" is summarized in this article. "So close and yet so different" is the subtitle of the first chapter.
 
The author focuses on the two areas in this first chapter. Despite being so close together, these areas are very distinct. These areas, which were divided by a fence, are Nogales, Arizona, and Nogales, Sonora. Nogales Sonora is located in Mexico, while Nogales Arizona is a part of the United States of America.
The author starts with Nogales, Arizona. People in this region are healthier and earn a decent living. And it leads to their success. People in this area can invest in the company. They are unafraid of corruption or injustice. Because they have more political influence. They can also use their political rights to depose any corrupt leader.
However, the case of Nogales Sonora differs from that of Nogales Arizona. People in Nogales, Sonora, do not have enough political rights. Their government is in a state of flux. People are afraid of crime, which is a common occurrence in Mexico. People are concerned about injustice. Their monthly income is ten times that of Nogales, Arizona. They cannot invent in business due to high restrictions and the law only work for the elite class.
The author examines both regions' situations and institutions. Many people believe that a country's prosperity or poverty is determined by its geography. Because it contributes to the expansion of the economy. However, according to the analysis provided in this chapter. It claims that different institutions shape different countries. Different institutions create different types of policies and incentives. They either drive the country to prosperity or to poverty. The distinction between these institutions in the United States and Mexico is due to the formation of societies during the colonial period.
Both societies emerged in the late 16th century in very different ways. Spanish colonists invade Peru and Mexico in the early 16th century. They also victimized the indigenous people as well as the king of the time. Their colonization strategy was to capture the area's leader. Indigenous peoples were enslaved. And they were getting food and equipment by victimizing them. They had taken over all of their gold and silver mines.
They began these savages by torturing their king, who provided these Spaniards with a place to live. After torturing the king, they took control of the entire region. Brutality, corruption, and injustice have pervaded Mexican institutions throughout history. Following independence from the Spanish regimes. The inhabitants of this region became antagonistic. Because of their internal conflicts, desire for power, and lack of concern for the nation. They were unable to establish viable institutions.
In the case of Nogales, Arizona, England established colonies in North America. Their colonization strategy was quite different from that of the Spaniards. Because the local indigenous leader was already aware of the dangers of colonization. It took England a long time to establish colonies in America. They were unable to enslave indigenous people due to the presence of the inhabitant king. They had to work for themselves, and England established colonies in America in the 17th century.
They established constitutional laws in the colonies in the mid-seventeenth century. They also established institutions that were founded on honesty. These institutions have been working for them since the 17th century. Americans gained their independence in 1789. Then, with the same sincerity, these institutions began to work for America.
A check and balance system were established in the United States, and people were granted political rights. If they discover any leader engaging in corruption and injustice. Then, through proper political mechanization, people can change leaders. In 1789, the leaders of the United States established proper democracy. It also brought about constitutional democracy. Politicians' power was limited by a system of checks and balances.
However, in Mexico, the elite held all of the power, and there was no balance in political rights. Citizens who used to speak out against violence. They were murdered by the elites. In Mexico, they established monarchal democracy. This is the distinction between Nogales in Arizona and Nogales in Sonora. The sincerity and honesty of the institutions established by states determines whether or not a country is prosperous. Because of the different natures of governmental institutions, prosperity is unequal in both regions.
 
It is worth noting that those countries that become developed nations live healthier lives and follow the laws of the land. In exchange, the government ensures the nation's safety from attacks, poverty, and fear. Those countries where the government is untrustworthy. Nations do whatever they want without regard for the law of the land. It was created by corrupt and crooked officials. These nations are being destroyed.
CONCLUSION:
It could be said that for the sake of the nation's prosperity. Sincerity is required of both the government and the general public. History demonstrates that corrupt leadership can only be eliminated through revolution. However, if the revolution is successful in removing corrupt leaders. As a result, the new one must be truthful. There should be no more dictatorships. And corrupt leaders ruling the country, as in Mexico.
In the 21st century, constitutional democracy is the most effective ingredient. As it could get used to resolve the weaknesses in the running system of institutions of the state.