Why Nations and Economies Can Fail

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The world is currently in a relatively peaceful state with billions

of people living under a comfortable roof and feels warm

enough during winter nights. Many do not suffer, but it is very

possible for all these things to be flipped over in a matter of

days. The economy and ‘peaceful’ nations that we see today

are not forever. Take Greek, for example, a nation that used to

possess the highest level of civilization is now drowning in debt.

The extractive economy (a system that relies on harvesting and

exporting raw or low-processed materials) that various countries

fall into due to lack of means to process raw materials are

signs of the danger. It is a vicious cycle that was pointed out

by Daron Acemoglu in his book ‘Why Nations Fail: The Origins

of Power, Prosperity, and Poverty’. And this is only the tip of

the iceberg that might surface anytime soon according to the

book.

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