Thursday, April 06, 2017

A Review of Acemoglu and Robinson’s Why Nations Fail


"At the end of the day, everything seems to be politics: “When there is conflict over institutions, what happens depends on which people or group wins out in the game of politics” (p.79). If inclusive political institutions determine inclusive economic institutions we must ask how we get there. Centralization and pluralism it seems. It is clear enough what centralization means, and the Somali example of group anarchy makes the point vividly. Unfortunately the implementation of a broad distribution of power is not as transparent - certainly not at the level of complexity of modern societies. Are universal suffrage and political freedom enough? Today it seems that is not the case. Many people living in democratic countries feel disconnected from their representatives. They feel uneasy and they don't know what to think. Universal suffrage is traditionally thought as equivalent to democracy but it is not. And as discontent grows, the man-in-the-street is ever more 10 prey - as is any desperate person - to hucksters and charlatans.  "

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"It is easy to make prescriptions impossible of fulfillment. Benevolent dictatorship is no doubt the best form of government - but how do we arrange for benevolent dictators? Democracy is best provided if it isn’t hijacked by elites or overrun by populism. But how do we prevent that? "

http://www.dklevine.com/general/aandrreview.pdf 

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