Question

What are the two principal reasons that economic inequality between countries exists today in the world,...

What are the two principal reasons that economic inequality between countries exists today in the world, according to Acemoglu and Robinson in "Development Reversed"? Do you agree with their assessment (why or why not)? 500 words

Homework Answers

Answer #1
  • The roots of discontent and economic inequality in these countries lie in their poverty.  These countries are poor precisely because it has been ruled by a narrow elite that have organized society for their own benefit at the expense of the vast mass of people. Political power has been narrowly concentrated, and has been used to create great wealth for those who possess it.
  • Countries such as Great Britain and the United States became rich because their citizens overthrew the elites who controlled power and created a society where political rights were much more broadly distributed, where the government was accountable and responsive to citizens, and where the great mass of people could take advantage of economic opportunities.
  • The industrial revolution that took place never reached these poor countries like Egypt,Zimbabwe etc.Thes poor countries because of lack of economic and political development have remained poor and suffering from corruption,oppression and bad education has made conditions even worse leading to inqualities and poverty. I do agree with their assessments,the governments of many poor countries have not been able to provide basic public services to its people,and even equal employment opportunities leading to economic inequalities. And yes political structure,as discussed by the authors is another major reason for the lack of development.
  • New technologies are extremely disruptive. They sweep aside old business models and make existing skills and organizations obsolete. They redistribute not just income and wealth but also political power. This gives elites a big incentive to try to stop the march of progress. Good for them, but not for society.As Britain and the United States grew rapidly, however, Austria and Russia failed to do so.
  • In the 1840s, tiny Britain was undergoing a railway mania in which more than 6,000 miles of track were built, while only one railway ran in vast continental Russia. Even this line was not built for the benefit of the Russian people.
  • When elites control an economy, they often use their power to create monopolies and block the entry of new people and firms. This was exactly how Egypt worked for three decades under Hosni Mubarak. The big businessmen were known as the “whales.” Their stranglehold on the economy created fabulous profits for regime insiders, but blocked opportunities for the vast mass of Egyptians to move out of poverty.
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
According to Acemoglu & Robinson, there were particular reasons why the Industrial Revolution occurred in England...
According to Acemoglu & Robinson, there were particular reasons why the Industrial Revolution occurred in England and not anywhere else. Explain those reasons. What would they recommend developing countries to do if they want to foster industrialization today and increase their engagement in trade with the global economy? Keep in mind that industrialization and trade today mean competing with the likes of the United States, China, European countries, etc. Also, there are no right answers but they are coherent and...
Please select 4 countries from different parts of the world and different levels of economic development...
Please select 4 countries from different parts of the world and different levels of economic development and compare them with each other GDP versus HDI. What are you noticing?
One argument in the debate surrounding globalization is about the inequality between developed and developing nations....
One argument in the debate surrounding globalization is about the inequality between developed and developing nations. Do you think the recent increase in barriers to trade is a help or a hindrance to reducing inequality? Why? and the whole question should have 500-words.
Identify a comparative advantage that exists between two countries globally. Justify/argue persuasively (using examples) for the...
Identify a comparative advantage that exists between two countries globally. Justify/argue persuasively (using examples) for the comparative advantage and why you think one country may have a comparative advantage over the other country.
1.Briefly explain some reasons for why fertility rates have fallen in the world 2.To what extent...
1.Briefly explain some reasons for why fertility rates have fallen in the world 2.To what extent is investment in education a necessary condition for economic development? Discuss the two theories on this issue. 3.What are the problems with setting a poverty line in a poor country?
Globalization refers to the increasing economic interdependance of countries with trade, it also refers to a...
Globalization refers to the increasing economic interdependance of countries with trade, it also refers to a rise in cultural exchange. It also refers to knowledge, information, people, across international borders. Whether we like it or not just like technology, globalization is not going anywhere! There are people that believe that globalization will save the world. That it will bring development to the world and fix 3rd world poverty. On the other hand, there are people that regard it with hostility,...
"Unrestricted free trade between nations will raise the economic welfare of countries that participate in a...
"Unrestricted free trade between nations will raise the economic welfare of countries that participate in a free trade system". Do you agree with this statement? Porter argues that government can play a proactive role in promoting national competitive advantage in certain industries. Do you support Porter's argument?
[1] Discuss the growing income inequality in the U.S. and the world with someone mature enough...
[1] Discuss the growing income inequality in the U.S. and the world with someone mature enough to have some perspective from experience about it. Ask them what they think about the widening gap between the rich and the rest of us in America, as our course materials speak of this problem. How has the economic trend for middle class Americans affected them? How as it affected you? [2] Two examples of the marketization of society today that Sandel discusses are...
[1] Discuss the growing income inequality in the U.S. and the world with someone mature enough...
[1] Discuss the growing income inequality in the U.S. and the world with someone mature enough to have some perspective from experience about it. Ask them what they think about the widening gap between the rich and the rest of us in America, as our course materials speak of this problem. How has the economic trend for middle class Americans affected them? How as it affected you? [2] Two examples of the marketization of society today that Sandel discusses are...
what conditions can an economic bubble arise? What do you think is happening in the world...
what conditions can an economic bubble arise? What do you think is happening in the world economy today? How can you avoid being dragged into an economic bubble with a new business venture