A brilliant analyses of the state of many of the world's countries based on the nature of the economic and political structures within the country, and also the relationship between the two.
They analyze many examples to back up their central ideas.
They analyze both economics and governments based on two polar opposites which are different aspects of the same dichotomy. Economically, there are inclusive or extractive structures operating. Politically, there are inclusive or exclusive/oligarchic/dictatorial structures in place. Inclusive economic structures encourage the dispersion of wealth through society, extractive structures concentrate wealth at the top. Inclusive structures encourage innovation, economic renewal/evolution and competition. Exclusive structures discourage investment and promote stasis and stagnation, as change threatens the economic and political elite. Same for exclusive/inclusive political structures. Oligarchic or dictatorial political structures can promote strong short-term growth as they can dictate where resources, both financial and human, are directed. The growth does not last, though, because of the tendency towards stasis and economic stagnation to guard positions of privilege.
They analyze various political and economic structures - colonialism and post-colonial government and economics, Stalin, Britain, China, and others - within their parameters, and a lot of it makes sense. I find I am seeing current events and history in a different light using these concepts.
There are also several sections on a question that has puzzled me for quite some time - how the British ended up developing this particular democratic system in combination with a strong economy. An interesting read.
Some other ideas worth considering - the importance of a centralized state as a prerequisite for inclusive economic and political structures. Centralized states can go both ways, but without centralized power there is no chance for inclusive structures. Everything is just chaos and infighting.
Another is the sheer chance of Britain and Europe developing the systems they now have. They talk about critical historical junctures, or moments of possible conflict - which forces win is not a forgone conclusion. If you are lucky, the inclusive forces win and life improves for most people. If not...
It also makes you realize that the continued existence of inclusive structures and economies is not a given; they can be slowly eroded by small changes in laws and regulations - I think you see this happening to a degree in the U.S. for the past decade or two.
The ideas in this book also make you realize the enormous difficulties of changing exclusive structures in failed and failing states, as these structures often have very deep historical roots. Our current structures are the result of centuries of slow change and growth - it is close to impossible to impose these in a country in a short time, especially if the elites benefit from the existing exclusive structures.
Another idea that strikes me is that most people on the planet live in extractive economic structures of varying degrees, and with no real political or social power. I can't imagine what it is like to live in a society where you are seen as something to be exploited (labour, taxes) and where the government has absolutely no care taking function. Pirate states...
No comments:
Post a Comment