Why Nations Fail?

Sometime a go I read the book "Why Nations Fail - The Origins of Power, Prosperity and Poverty by Daron Acemoglu & James A. Robinson published in 2012 US. These days I have been forced to rest due to contagious illness, so I have revisited the book and its interesting chapters. Even though, authors received some critical comments, there are many astounding arguments on the topic referring to historical development of political and economic institutions in different geographies.

In a nutshell, book revealed that, nature of the political and economic institutions affect whether the society is driving for prosperity or poverty. That ultimately decides on the success or the failure of the nation.

Book described simply,

The city of Nogales is cut in half by a fence. If you stand by it and look north, you will see Nogales Arizona located in Santa Cruz County. Income of the average household there is $ 30,000 a year. Despite all the arguments people make about deficient the US healthcare system is, population is relatively healthy, with high life-expectancy by global standard...…People of Nogales, Arizona can go about their daily activities without fear for life or safety and not constantly afraid of theft, expropriation or the things that might jeopardize their investments in their businesses and houses.... They can vote to replace their mayor, congressmen, and senators, they vote in the presidential elections that determine who will lead their country. Democracy is second nature to them.

Life south of the fence, just a few feet away, is rather different. While the citizens of Nogales, Sonora, live in relatively prosperous part of Mexico, the income of the average household there is about one-third that in Nogales, Arizona. Most adults in Nogales, Sonora, do not have high school degree, and many teenagers are not in school. Mothers have to worry about high rate of infant mortality. Poor public health conditions mean its no surprise that the residents of Nogales, Sonora, do not live as long as their northern neighbors.....democracy is very recent experience for them.....Mexico was under the corrupt control of the Institutional Revolutionary Party.

By describing same city (all geographical features are same) with two different political and economic intuitions (US and Mexico) how much differs the socio-economic development. From this simple example and to much deeper studies about cavillation of South America, Spanish colonialism, Fresh revolution, Glorious Revolution of Britain nicely described the impact of difference between "Extractive Economic & Political Institutions and Inclusive Economic and Political Intuitions".

I rather, prefer to compare argument of the book into Sri Lankan contest. Are we having inclusive political and economic institutions ? or extractive political and economic intuitions?

Think about starting business and make it successful one...How many barriers, bureaucratic process to be followed....paying bribes to officials to get things done...Unnecessary delays.... uncoordinated government institutions.

Do our political system support the economic growth of the country or is it burden on citizens? These are the basic question we need to answer. Current youth struggle at #GotaGoGama resembles this. This is where the system change required.

But not to forget, as the book explained economic or political development cannot be engineered in short period time. It is natural process of continuous struggling for better change until the change become virtuous cycle. Currently, what we experiencing the viscous cycle of short-slightness of political ideologies lead to poverty and tyranny since the independence.

I hope this is Sri Lanka's critical juncture and golden opportunity to review our political economic intuitions for much more inclusive one towards prosperity from poverty.