Why some nations fail while others succeed has become a mysterious question for many. However, in their book Why Nations Fail, authors Acemoglu and Robinson finally revealed to their readers what really causes nations to fail, namely the extractive economic institutions that some governments have. This article will explore the current type of economic institutions in three different countries using knowledge from the book Why Nations Fail, as well as historical facts to support the given statements. The economic institutions of the countries that will be explored are Venezuela, Mexico and Haiti. These countries will also be compared to the United States, a country with inclusive economic institutions. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Venezuela has been in economic decline for a long time. According to the article, “Venezuela is in its third year of recession and according to the International Monetary Fund, its economy is expected to contract by 10% this year” (Gillespie, 2016). The main cause of this recession can be attributed to the head of the Venezuelan government, Chavez, who excessively focuses public spending on extractive economic institutions. In the book Why Nations Fail by Acemoglu and Robinson, it is stated that it is economic institutions that form the foundation of economic development, as evidenced by the fact that economic institutions allow people to trade and comfortably start their own businesses . being at the heart of economic growth brings us to the theme of trade. Venezuela, as we mentioned, was a prosperous country only ten years ago. This was mainly due to the fact that Venezuela was an oil-rich country. The point of trade is for countries to specialize in what they do best and export it while importing what they lack. The problem with Venezuela is that even though they specialized successfully in oil production, they didn't really produce anything else or import goods from other countries. Additionally, Venezuela did not export any of the enormous amount of oil it produces. Through the article, one can discover that Venezuela's main oil company, run by the government, is the main reason why none of these exports or imports are taking place. This shows once again how extractive economic institutions can ruin a nation. Due to the economic recession and lack of trade in Venezuela, inflation has become a tangible problem. Prices are skyrocketing and Venezuela experiences a staggering rise in inflation in 2016, reaching 475% (Gillespie, 2016). Not only are prices high, but producers are unable to produce due to the lack of trade. This ultimately results in food shortages and suffering for citizens. While citizens of the United States can freely walk into any Publix or Winn Dixie and shop as they please, citizens of Venezuela line up outside supermarkets only to discover that the last bottle of milk has already been purchased 2 hours ago. . Food shortages are causing a rising death rate in Venezuela, with more children and elderly people suffering from malnutrition. Mexico is the second country to explore its economic institutions. As explained in Why Nations Fail, the reason Mexico currently has extractive economic institutions is.