Why… (Caribbean) Nations Fail
Perry C. Douglas
February 1, 2022
In the ground-breaking book Why Nations Fail, authors Daron Acemoglu and James A. Robinson provide an evidence-based analysis of the origins of power, prosperity, and poverty. Acemoglu and Robinson tackle some of the most important questions in development. Questions about the nature of how economic development, wealth, and power flows and transcends in the universe. They provide analysis and good answers by looking at why nations fail.
Why are their national income differences within regions? For example, why is Botswana prospering, and Sierra Leone isn’t? Both African counties have similar colonial histories. As they take you through history, the authors conclude that strong inclusive institutions often are behind successful civilizations. Those political institutions drive economic growth and good social outcomes, and they provide analysis that without inclusive institutions within a good strategic framework, it’s improbable that sustainable economies can prevail. Their research also shows that authentic free markets supported by good democratic institutions are the best-suited underpinnings to spur entrepreneurship and innovation. Why Nations Fail is essentially a lesson in human history; it doesn’t pull punches, is well researched, evidence-based, honest, and clear about the hard objective truths. It teaches us that in the end, it comes down to the quality and veracity of the decisions leaders make that determines the fate of nations, further, those good decisioning frameworks are extremely helpful to get good outcomes through.
As the authors point out, “…poor countries are poor because those that have power make choices that create poverty. They get it wrong not by mistake or ignorance but by purpose… [to get this] you have to go beyond economics and expert advice…study how decisions get made, who gets to make them, and why those people decide to do what they do.”
The study of politics and process, which traditional economics have ignored or turned into a useless philosophical study, has made the actual study of development economics irrelevant to those in which it says it wants to help. Therefore, for the Caribbean’s purposes, economics is not helpful, even distortive, and harmful; increasingly focused instead on advancing the latest theories, mainly for peer-review and instant academic gratification. Not for helping people. As economist Abba Lerner noted in the 1970s, “Economics has gained the title Queen of the Social Sciences by choosing solved political problems as its domain.” Therefore, western led development agencies and academic institutions are part of the problem, a big distractive monster that must be ignored. Why Nations Fail, crushes the conventional academic discourse on development by exposing these bogus non-explanations, explanations, “most hypotheses that social scientists have proposed for the origins of poverty and prosperity just don’t work and fail to convincingly explain the lay of the land.”
Why Nations Fail aligns well with my main theme of applied intelligence-based decisioning. A disciplined but flexible learning framework that is underpinned by knowledge ecosystems, technology applications, and efficient capital allocation. All to be executed through fact-based strategy formulation and vision. Of which must be facilitated by authentic leadership, cognizant of the critical role inclusive political institutions must play in the sustainable development of the nation-state.
The authors provide many centuries of the economic history of different civilizations, and the evidence shows that it’s always the same story, that “the engine of technological breakthroughs throughout economy was innovation, spearheaded by new entrepreneurs and businessmen eager to apply their new ideas. This initial flowering spreads…people saw great the great economic opportunities available in adopting the new technologies developed…they were inspired to develop their own inventions.”
Therefore, the Caribbean must drive towards and foster an inclusive knowledge-based entrepreneurial culture, with strong and genuine facilitative leadership and inclusive institutions. A mindset reset and a recalibration of political institutions to service this entrepreneurial culture is amongst the most important things to move the species forward with. However, self-serving institutions stand in the way of this progress — corrupt dealings, status and political power-seeking, incompetence, is a major barrier to growth. Efficiency, scale, and innovation are the driving forces behind dynamic economic growth, inefficient institutions retard that, however.
Therefore, when efficiency and inefficiency collide, efficiency must prevail for societies to be the best they can be, to be beneficiaries, to move forward. Inefficient and ineffective and corrupt institutions filled with superfluous selfish politicians put the strangulation on prosperity. Technology and innovation have been the one mainstay or common denominator of growth as the evidence shows, but it is very problematic for technology and knowledge to do their thing in poor operating environments. Environments that stifle instead of facilitating growth through efficiency applications and methodologies. Inefficient environments simply get in the way of growth. So, let’s maximize our fact insights, awakening and revitalizing the basic needs of our human condition — self-preservation, prosperity, and happiness.
“Happiness is the meaning and the purpose of life, the whole aim and end of human existence.” — Aristotle
A 21st-century renaissance movement is necessary to build inclusive economies and discontinue settling for the economy others have imposed on us. We must forge aggressive and calculative societies, always going for it! Utilizing technology to create opportunities to transform existing industries, legacy structures, and to create new ones. We must use institutions to create growth and risk-taking incentives, reward innovation and creativity, and independent thinking…individualism. And create an environment to allow everyone to participate in the economy. Governments in the region must get their collective acts together, peoples’ humanity is at stake. Hold yourself responsible, accountable to your citizens above all else, and find some courage. We need virtuous leadership!
Government can’t do the job of entrepreneurship, but they can certainly facilitate through policy decisions, laying the conditions for a long-term sustainable economy, including food security and good healthcare.
Past efforts are no longer good enough, we must do better once we know better, and it starts with creating sensible knowledge ecosystems strategies for digital transformation. A Caribbean renaissance movement in thinking and actions must have a fervent rise, commitment to a full decade of an all-out push for the species future survival. Self-determination means exactly that, “self-determining” your future, not leaving it in the hands of others. Life-long learning, realignment, and adaptation are fundamental to human progress, so there is no choice if you want the species and territory to exist 50 to 100 years from now. Then heed the wise words of Aristotle…everything is of your own doing.
