Question

In the book "Why Nations Fail" by Acemoglu and Robinson, based on their weaknesses explain how would you assess your country’s prospects for development in the future? What would you recommend for the future? Is there an alternative development path not considered thus far?

Answer 1

Acemoglu is the economic scholar of Massachusetts Institute of Technology and Robinson is the economic scholar of University of Chicago. With the combined efforts of both scholars, "Why Nations Fail" was published in 2012. It mainly propagates and analyzes the idea of how nations improve their economic status by adopting and implementing effective monetary and fiscal policies in their own country. The Book also emphasize the other failure stories of the nations who fails to adopt such policy in order to gain prosperity in the economic development. The authors of this book created the experimental discussion of comparing the developed nations with the developing nations, so that policy makers can derive the good policy which can be implemented for the nations economic development in the future. Let us explain the facts of how far we can access our country's prospects for development in the future period and also the suggestion and also the alternative path of solution using it for the future period.

There are some critical points views were portrayed on the ideas framed by Acemoglu and Robinson. Amidst those views, we can alternatively frame the policies which can foster the economic development of the country. According to the view of above mentioned economists, it is said that inclusion of political power in influencing the method of approach was real used as a good parameter for the gradual improvement in the growth of each citizens way of life. Such growth of each individual will give the positive sign of nations development. But we can suggest another idea in order to gain the increasing trend for the economic development for the least developed nations.

Money supply and the Productive function needs to be give full attention in the action plan of development. Though Political and the institutional factors may help to eradicate the evils of inequality of wealth accumulation only in one place of Rich people. But the unhealthy idea of political power will leads to failure of system. Some political power may misuse the original conception and react only to the benefits of the big shots in the society. The government should set up one advisory committee to regulate the money supply without exceeding its limit and thus avoiding hyper inflation. The Real GDP will take in to consideration, as the it will take inflation also in to the account of GDP calculation.  And all the four factors of production namely Land, Labor, Capital and Organization should be properly regulated and they should correlate with the smooth functioning of goods and services in the country. It will also helps to earn high foreign exchange reserves as well as equalize balance of trade through increase in GDP and National Income. At last finally this policy is considered as the alternative way of improving the economic development of the developing nations.