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Acemoglu and Robinson - Book Report/Review Example

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Question 1: In chapters 8 and 9, A&R argue that extractive institutions are not the only reasons (causes) for countries to become poor and economically underdeveloped. They argue that poverty and underdevelopment are sometimes “imposed” and forced on countries. What do they…
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Acemoglu and Robinson
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Acemoglu and Robinson

Download file to see previous pages... Growth can be achieved in poor economies through trade liberalization1. However, trade liberalization has not been granted by developed economies. Poor countries have no trade policies that can assist in exporting their goods to other markets. Foreign aid alone cannot assist poor economies because corrupt institutions misuse foreign aid for their selfish gains. In war torn countries such as Syria and Iraq, bad institutions exist because they are imposed on the citizens by the elite who do not want a change in the status quo. In Africa, it is difficult to explain how Botswana is richer than Sierra Leone. In particular, the elite are concerned about the welfare of the population while in Zimbabwe; the elite do not want the situation to change for the benefit of the citizens. Poverty in Zimbabwe, DR Congo, and Sierra Leone are, therefore, imposed by the elite2.
Neo-colonialism still affects Africa even through colonial masters left Africa several decades ago. Acemoglu and Robinson (2012) argue that neo-colonization determines how governments in poor countries are managed. Poor economies in Africa are still colonized. Acemoglu and Robinson argue that colonial masters determine economic growth for the poor countries. The colonial powers want the political actors in an economy to remain without change. Colonial powers, as well as developed economies in the world, do not want a change in the management of institutions3. In particular, countries like the United States should send policy makers to poor countries on how they should improve the management of institutions. However, developed economies want the status quo to continue because they have political interests in the management of these poor economies. For example, Democratic Republic of Congo is one of the poorest countries in the world despite the numerous mineral resources.
In poor countries such as Democratic Republic of Congo, poverty is imposed by colonial powers because ...Download file to see next pagesRead More
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