"As surely as there is a voyage away, there is a journey home."
-Jack Kornfield
Showing posts with label why nations fail. Show all posts
Showing posts with label why nations fail. Show all posts

13 April 2012

Why Nations Fail on Sachs

Having spent a good deal of time in the last few years following the work of Jeffrey Sachs, and his theoretical arguments that poor geography is the chief determining factor for poverty (and, inversely, if we tackle the geographic limitations, such as disease and land productivity burdens, we can eradicate poverty), it has been interesting to see his research dismantled by the duo, Acemoglu and Robinson, in Why Nations Fail:

" Tropical diseases obviously cause much suffering and high rates of infant mortality in Africa, but they are not the reason that Africa is poor. Disease is largely a consequence of poverty and of governments being unable to undertake the public health measures necessary to eradicate them."
Certainly a valid point, yet, the authors do not fully address the issue of poverty traps, a central theory in Sachs' work. And although I do agree with Acemoglu and Robinson on this point (something about Singapore being malaria-free while remaining in the tropics raised an initial red flag in my mind), they do not address the practical steps that need to be taken to address the current state of affairs in many of these nations. If nations are stuck in cycles of poverty and disease and incapacity in handling public health measures, how do we create the inclusive economic and political structures needed to then address the institutional change necessary for country-wide shifts? 

Why Nations Fail

I am currently reading the excellent new book, "Why Nations Fail," by Acemoglu and Robinson. First introduced to this trio earlier in the year with their colonial/settler theories on development (extractive colonies vs. inclusive colonies as being the key predeterminant for future economic success), this book has been impressing at every step with its clarity and purpose....

A comment, on their views on failing educational systems:
"The low education level of poor countries is caused by economic institutions that fail to create incentives for parents to educate their children, and by political institutions that fail to induce the government to build, finance, and support schools and the wishes of parents and children." 

While I agree that inclusive economic institutions are vital to a nation's (and individuals) prosperity, schooling incentives can often be decoupled from the reality of the immediate economic climate, or better yet, inverse to the broader economic climate; desperation or struggle  in one's current situation will lead to an increased hope in the power of education as a "savior" for the next generation, a though and wish echoed constantly in the developing world.
The "incentives" for schooling, thus, often fall under the familial desire for the next generation to prosper, and an often misguided hope in the individual economic rewards that can be reaped by sending children to school (see: Poor Economics). Thus, I would argue, the above proposition regarding economic institutions (though I agree with the political institutions necessity) is much too broad and general to render valid, in the area of education, as proposed.