Relevance of Korean Peninsula
Robinson made it clear that even though the book’s title is Why Nations Fail , an evenly significant question is to understand the reasons why other states are able to succeed. In this case, Robinson indicated towards the Korean Peninsula as a means of showing the significance of man-made economic and political institutions established for the purposes of shaping economic prosperity (Robinson, 2013). Additionally, Robinson pointed towards North Korea, which presently overwhelmed by malnutrition, mass famine as well as dreadful standards of living. In contrast, South Korea was seen as a prosperous and dynamic country in spite of the fact that the majority of industries were situated alongside the North, fifty years ago. In addition, Robinson stated that centrally planned economy of North Korea blocked the incentives as well as opportunities of its population at the same time as the inclusive economical and political institutions of South Korea fostered growth (Robinson, 2013).
Extractive and Inclusive Economic and Political Institutions
Extractive economic and political institutions are normally led by a small group of people who make efforts of engaging in exploitative activities against the rest of the population (Robinson, 2013). Additionally, extractive institutions tend to exploit all inclusive institutions that involve active participation of many people during the process of governing .on the other hand, inclusive economical and political institutions are only capable of delivering growth if the prevailing economy is able to catch up with advancements occurring in technology frontier (Robinson, 2013). However, when innovations are required to enhance the frontier, such nations tend to fail while on the other hand, nations that enable technology benefit due to continued growth.
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Comparing Wealth in United States and Mexico
Compared to Mexico, the United States is more wealthier due to superior technology that resulted in a powerful economy, translating to a GDP capita of approximately $57, 300. Mexico failed to develop its economic institutions such as in the field of computers, medical and pharmaceuticals, military economy as well as aerospace.
References
Robinson J. (2013). Why Nations Fail . Retrieved from> www.youtube.com/watch?v=jsZDIBU36nO. Date Accessed. April 10, 2018.
