Why Nations Fail - article notes - and economic growth...

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Why Nations Fail “Why Nations Fail” argues that the key differentiator between countries is “institutions” nations thrive when they develop “inclusive” political and economic institutions, and they  fail when those institutions become “extractive” and concentrate power and opportunity  in the hands of only a few inclusive: enforce property rights create a level playing field encourage investment in new technologies and skills political power distributed widely extractive: extract resources from the many to the few the core point is that countries thrive when they build political and economic institutions  that “unleash,” empower and protect the full potential of each citizen to innovate, invest,  and develop Analysis of China and why they haven’t found the formula for combining political control 
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Unformatted text preview: and economic growth China is experiencing growth under extractive institutions- under authoritarian grip of the Communist party, which has been able to monopolize power and mobilize resources at a scale that has allowed for a burst of economic growth starting from a very low base Not sustainable beause it doesn’t foster degree of “creative destruction” that is so vital for innovation and higher incomes Sustained economic growth requires innovation American can only be a force multiplier (For countries its helping) Where you have grass-roots movements that want to build inclusive institutions, we can enhance them. But we can’t create or substitute for them....
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