By KEN ALI
Why Nations Fail is a book for the current times in Trinidad and Tobago.
The masterpiece was written almost a decade ago after about 15 years of study by two renowned economists.
They concluded that nations succeed not because of culture, geography, weather, or education, but as a result of institutions.
If institutions are inclusive, they create accountability, reinforce and protect each other’s rights, lead to redistribution of wealth and keep society democratic.
They noted the role of Parliament in enacting policies, holding the authorities to account, protecting citizens, warding off monopolies and business over-reach, etc.
Parliament, they said, is crucial to a people’s success.
Non-inclusive institutions – the authors called them “extractive” – lead to dysfunctional societies, where wealth is concentrated in the hands of a few, people are oppressed, leaders are not held responsible, and there is “creative destruction.”
The scholars cited North and South Korea, one a dictatorship with a failed economy, the other a democracy, modern and industrialised, with a high quality of life, and a thriving population.
They pointed to other examples, including Caribbean islands like Trinidad and Tobago which were exploited by colonial powers to serve the interests of an elite minority, and without fair and functioning institutions.
The compelling and brilliant study says that successful countries enable investments, modernise their economies, provide quality infrastructure, govern for all, manage violence, and “establish institutions and laws that work for the majority of people.”
Failed nations did not meet their potential because “they have been ruled by a narrow elite that organised society for their own benefit…”
I went back to the book in light of raging concerns over key local institutions, including Parliament, where disputed issues ought to be debated, and the government made to account for taxpayers’ money and face critical reviews of its policies.
There is also distress about manipulation of independent service commissions, absence of police leadership, poor crime detection by law enforcement, pathetic pace of justice, and doomed state of several other vital agencies.
The core point of the highly-acclaimed study is that institutions – including an efficient Parliament – are critical to a country’s progress and development.
A word to the wise!
