Manamohan
ManamohanAn important book in the field of international development is ‘Why Nations Fail: The Origin of Power, Prosperity and Poverty’ by Darren Ejemolu and James A. Robinson has written This book talks about the issue that some nations are prosperous and democratic while others are suffering from poverty and dictatorship. Ejemolu is a professor of economics at the Massachusetts Institute of Technology and Robinson teaches at the University of Chicago’s Harris School of Public Policy. Both are associated with neo-institutional economic ideology, emphasizing the roles of institutions in shaping the developmental economy and politics. While reading this book, one gets a glimpse of evolutionary economist Douglas North’s understanding of the new economy.
The book ‘Kumman Kyun Fehl Hotane’ raises the important issue that the question is standing before the seven billion inhabitants of today’s world that why some countries on this earth are richer and more prosperous than others? Historical interpretations of this question range decisively from racialism (genetic differences or Protestant moralism) to Marxist (imperialist) exploitation. Although there is much truth in this, Ejemolu and Robinson argue that what drives sustainable economic growth are actually well-functioning institutions such as the judicial system; In which the countryman gets justice on the basis of evidence regardless of his wealth and poverty.
Both authors believe that historically the sense of equality has been rare and less widespread. In most countries, reductionist/non-inclusive policies are designed in such a way as to keep the traditional aristocracy rich and powerful while exploiting and exploiting the poor majority. At the same time, these policies stifled technological research and innovation as the wealthy elite fought every move of the poor that threatened their interests and interests.
Some nations had long ago eradicated this aristocracy. This change, which started with the Great Revolution of England in 1688, took place after 1979 until Deng Xiaoping opened China to the open market and is still going on in many countries in an open and hidden form. It is important to be fully aware of the political aspects of this logic, but it is not known why the rich economic growth and stability of the countries under the authoritarian rule of many countries in East Asia do not speak. This book adopts an interdisciplinary approach to understanding the success and failure of nations.
The success of nations depends on the inclusive nature of their institutions. Inclusive/inclusive political and economic institutions encourage capital investment and innovation through the protection of human and property rights, which make nations and countries successful. Good inclusive institutions create a sense of investment and security, not bad, abstract and passive institutions. A virtuous circle of discoveries and inventions, expansion and peace is created through these inclusive institutions which in turn drives the cycle of prosperity and development.
International development includes three dominant approaches to explaining most developments around the world: geography, culture, and finally institutional theory. Somewhere climate, philosophy and history also appear in it. The authors of this book are of the view that geographical and cultural explanations do not prove effective in explaining developmental differences. For this he gives the examples of South and North Korea and West and East Germany. The examples of the kingdoms of the Inca and Aztec civilizations come in comparison to the developmental division of the Americas of the present period of the New World. It has given many examples of the phenomena of poverty and inequality in the developed, developing and underdeveloped countries of Western Europe, America, Africa in the last two hundred years of colonialism and feudalism; As the North and South Nogales are divided by the border between Mexico and the United States. These two sides have the same history, almost homogenous geography, the ethnic identity of the people is also the same and the culture and language are also the same, but still the northern side is much richer and more prosperous than the southern side. The same applies to India and Pakistan to a large extent. India is better than Pakistan because the democratic and constitutional institutions in India remained more effective and safe, but the kind of tampering with the institutions that has started in the present era, the days do not seem far away that we also have many of our neighboring countries, Sri Lanka. , days like Bangladesh and Pakistan have to be seen.
The central claim of this book is that fundamental differences in the institutions of different nations are the main causes of global inequality. Inclusive and inclusive organizations provide people with freedom of choice, an environment of diversity, and an environment to freely express their qualities. On the other hand, non-inclusive and totalitarian institutions create a parasitic aristocracy at the expense of the majority. Political and economic institutions complement each other and implement each other in a mutual manner. Regarding this, the plague spread in Europe and the different performance approach of various nationalities organizations in Europe to deal with this challenge demands attention.
The book also argues about geography as there are many landlocked countries that do not have any ports. Their level of prosperity and wealth is lower than that of the countries that are located along the coast. The same applies to landlocked states like Punjab and Bihar and coastal states like Gujarat or Maharashtra. From a historical point of view, from the prehistoric period to the modern period, the discoveries and inventions of the Renaissance and Enlightenment period in Europe opened the way for industrialization, behind which institutions played a role, but the people of the underdeveloped and third world countries were poor and backward. Because they could not find an environment that could make them prosperous and rich.
It can be said that inclusion and inclusive economic institutions pave the way for prosperity, technology and education. It is the complex interplay of political and economic institutions that affects the well-being of nations. Inclusive and inclusive organizations promote participation, protection of property rights and research and innovation. All these qualities are hiding the secret of financial success. On the contrary, absolutist and intractable institutions concentrate power and wealth in a few hands, leading to stagnation and poverty. Political and constitutional institutions act behind economic outcomes. Nations that have functioning inclusive political systems tend to have inclusive economic systems, while authoritarian states often fall into economic declines due to corruption and unaccountability.
Behind all this historical judgements, right decisions and events play a vital role which has to influence the development institutions. Therefore, to understand the current political and economic scenarios of nations, it is very important to know their historical background and cultural heritage. Researches and inventions play a major role in economic development. Inclusive institutional societies create an environment where residents feel safe to do research, to invest ideas. It is with these efforts that nations feel technologically advanced and economically prosperous. Many difficult situations occur in societies which contribute significantly to the rise of the institutions of nations. These moments play a role in bringing about positive and negative change in those nations, depending on how they are handled.
There is a feedback loop between political and economic institutions. It is the process in which the output of a system is used as the input for the return. Strong economic performance creates inclusive political institutions, while weak economic performance results in absolutist and intractable institutions creating a gap that is not only difficult but sometimes impossible to bridge. The current period of Punjab is seen to be passing through some such phase. Globalization also has an impact on national institutions. Globalization offers opportunities for increased productivity, but its benefits and profits are often unevenly distributed, ending up among elites, leaving essentialist and intractable institutions unable to keep pace with the global economy.
This book provides an intellectual framework of some lessons for a holistic understanding of the role of the functioning of development institutions behind the economic gaps and inequalities created by the failure of nations.
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