Category Archives: Economy

Friedman on New Book: Why Nations Fail?

http://www.nytimes.com/2012/04/01/opinion/sunday/friedman-why-nations-fail.html?_r=1

“Our analysis,” says Acemoglu, “is that China is experiencing growth under extractive institutions — under the authoritarian grip of the Communist Party, which has been able to monopolize power and mobilize resources at a scale that has allowed for a burst of economic growth starting from a very low base,” but it’s not sustainable because it doesn’t foster the degree of “creative destruction” that is so vital for innovation and higher incomes.

“Sustained economic growth requires innovation,” the authors write, “and innovation cannot be decoupled from creative destruction, which replaces the old with the new in the economic realm and also destabilizes established power relations in politics.”

extractive political institutions

Concepts:

extractive political institutions 

creative destruction

The Aftershock Survival Summit

Can that be true? IS it is that horrible, snow after frost? Welcome comments.