Friday, November 4, 2022

WHY NATIONS FAIL By Daron Acemoglu and James A. Robinson (CHAPTER 2)

 

THEORIES THAT DON’T WORK

The lay of the land:

There are three main takeaways from this chapter.

To understand world inequality, we have to understand why some societies are organized in very inefficient and socially undesirable ways.

Poor countries are poor because those who have power make choices that create poverty. They get it wrong not by mistake or ignorance but on purpose as the that England in the nineteenth century was also a very unhealthy place, but they tried to change their condition not to stuck on those problems. Now England is the richest country of the United Kingdom.

Achieving prosperity depends on solving some basic political problems.it is undeniable that political decisions, from the highest level down to the local level, has much more significant impact on economy and society than even 100% discipline from all people i.e., it doesn't matter if all people follow the rules if the rules themselves only enrich a very small fraction of the population, every will most likely stay in poverty and worsening conditions.

 

No comments:

Post a Comment

PAKISTAN'S ENERGY CRISES AND IT'S CIRCULAR DEPT / PROPERTY TAX

PAKISTAN'S ENERGY CRISES AND IT'S CIRCULAR DEPT: Pakistan has a big problem with its power sector. The power sector is the part of t...