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  • Essay / Why do nations fail? by Daron Acemoglu and James A....

    IntroductionWhy do nations fail? This is a popular topic of debate among many economists and a question that many researchers have struggled to find an answer to. Global poverty is a problem that economists Daron Acemoglu and James A. Robinson study and offer an alternative view in their book: “Why Nations Fail.” Acemoglu and Robinson study the inequalities that exist between countries and why some nations are an example of success and others of failure. They offer an alternative explanation for why living standards differ across countries and why there is a gap between the rich and the poor. The book presents an example of two cities separated by a border: Nogales, Arizona and Nogales, Sonora. On the U.S. side of the border, the average household income is $30,000, the population is relatively healthy, and citizens live prosperously (Acemoglu and Robinson, 2012). Across the border in Mexico, the majority of the population does not have a high school diploma, there are poor health conditions, poor infrastructure, and, unfortunately, high infant mortality rates (Acemoglu & Robinson 2012). How can the situations on opposite borders be so different? Acemoglu and Robison's thesis on this phenomenon is based on that of institutions. They suggest that there is a strong correlation between economic and political institutions. That is, inclusive political institutions support inclusive economic institutions, and extractive political institutions support extractive economic institutions (Acemoglu & Robinson, 2012). Democratic institutions generally provide opportunities for the majority, leading to positive economic growth. Political institutions that cater to a narrow elite are reinforced by stag...... middle of paper ...... result, 1000 civilians died, but the majority of the fundamentalist group was eliminated. In 2009, Goodluck Jonathan assumed the presidency upon the death of Umaru Yar'Adu (BBC News Africa, 2013). In the 2011 elections, Goodluck Jonathan won the majority of votes against his military opponent, Muhammadu Buhari. Observers said the election was the fairest it had ever been in history, but Buhari's supporters objected to the results. Soon after, the fundamentalist group Boko Haram made a resurgence and attacks occurred daily in the country. As a result, the Nigerian government declared a state of emergency and sent in troops. In January 2012, Goodluck Jonathan removed the country's fuel subsidies to repair a tattered economy, but this only increased fuel and food prices. In response to the price hike, Nigerians began to protest, which eventually led to the reinstatement of the subsidy..