📘📕 Why Nations Fail | A Book Review
“Why Nations Fail” was written during the “Arab Spring” revolutions of 2011, as the authors were quick to point out and use as an example of how revolutions initiate. However, in the years since that wave of political unrest began, we can now look back and say that they can evolve in radically different directions than we might first assume they will develop or turn out in the end.
Below are my combined note-thoughts and quotes that stuck out to me while listening.
Goal: to explain how poor nations are kept poor
How do wealthy/powerful nations become poor? Rapid reversal of course
Economic institutions emerge from political institutions
Extractive vs inclusive, centralization vs democratization “pluralistic”
“The virtuous circle” feedback loop
Phrase “by fiat” shows up a few times with negative connotations
Addresses problems of a command economy, monetary policy and the disconnect of value
Innovation destabilizes political power, undermining disruption enhances stability
Financial innovations are political revolutions are societal evolution
“political centralization often creates a tendency toward absolutism”
Approximately 10m Africans were shipped out as slaves
“The South was not even innovative in the sectors in which it specialized” low patent filings in crops, particularly cotton
Extractive institutions lead to failed states; could apply to both the CSA and nations of Africa that participated in the slavetrade
Most economic disparity emerged over the last 200 years - example: Korea division at 38th parallel
“Sustained economic growth requires innovation”
I'm not crazy about this book. i think they have some good points in terms of their extractive/inclusive model. However, I think there could be an updated version that better assesses the Arab Spring. Perhaps it could also include how Bitcoin is involved with some of the economic downturns we are seeing particularly in regards to nations such as Venezuela or Iran.