Why Nations Fail

In recent months, I’ve been hooked by this book entitled “Why Nations Fail” which has greatly influenced my view on the social project we are leading in the city. It is the great work of two MIT economists named Daron Acemoglu and James Robinson.

As shown by an avalanche of historical evidences, factors such as weather, geography and even culture do not definitively influence growth trajectories of societies overtime. The whole central thesis of the book is that nation’s fail mainly because of man-made political and economic institutions that underline economic success.

Political institutions primarily create economic institutions. People who hold power over a society primarily create political institutions. Looking at who holds the power is the beginning of the development narrative. Is political power held by a small number of land owning barons? Or is it dispersed to an array of diverse interests?

The book dichotomizes these political institutions as either exclusive or inclusive. Exclusive political institutions mean that it is governed by a homogenous group who uses the power of the sate to entrench and enrich their own ruling class at the expense of the broader development of the many. Inclusive political institutions mean that broader, varied and competing interests are able to hold power and use the state to enrich a broader population base.  

Since the entrenched ruling class has the incentive and the means to concentrate power upon themselves, it creates a vicious cycle of corruption and poverty. Taxes and other policies are used to finance private gain at the expense of greater societal development. At the level of the common people, there is no incentive to innovate since at anytime, their innovations might be expropriated or taxed to destruction by the state.

However, in certain convergence of historical events, these closed institutions crack up such as the signing of the Magna Carta in 1215 in England where for the first time, a sovereign agreed to limit his power.

This then became a staging point for further political development of England in the next centuries which ushered broader participation by ordinary townsfolk in political affairs. They were able to draw back the power of the ruling elite and establish a system of laws that is tilted in favor the common people. 

An example, which would propel England to the world stage in the 18^th century, is its relatively fair and enforceable patent laws. Due to the demand of the common people to protect their inventions, coupled by a parliament that already has common representation, these laws were passed with little opposition by vested elites fearful of innovation.

This law gives incentives to thinkers such as Sir Isaac Newton to express their scientific discoveries. It also encourages innovators to invent the steam engine that ushered in the Industrial Revolution.

As compared to Czarist Russia at the same time, railroad development was intentionally halted out of fear that railroads would mobilize the masses faster, with the ideals of the enlightenment with it. An anxious elite would use all means and power to stop it from happening but as we later know, their own neglect was their own undoing.

As a closing, it was only when a growing conscious and educated working class who organize themselves politically and assert their power within the state structure did these societies see a dramatic change in policy and direction which ultimately made prosperity a reality for a majority of the people. Giving the middle class sufficient political power creates a virtuous cycle where the decisions produce policies in its favor which in turn would benefit society overall. 

So in the Philippines where the shadow of feudalism cover much of our provinces and cities, when will the middle class grow sufficient in size, knowledge and idealism that will enable it to change the balance of power? I guess, based form the book, it is only then when we can dream of a better Philippines. 

It will never be finished

Thank You Lord. The dedication of volunteers around us inflame our hearts more to give. This kind of work is never easy I suppose. It entails a lot of heart-work and a consistent rechecking of values. You have this set of ideals being constantly tested by an oftentimes uncooperative and unreflective reality. but we continue to move forward and build better because we know its value and its importance in itself. We do it because it is important. And as we immerse in this field, a truth simply reveals itself: that this world is unfinished - and it will never be finished. That is the whole beauty of it i guess. We do not know where our efforts will lead but we are sure that in this moment, we are attempting to live out the fullness of our humanity through service - though private individuals, we labor to build what we believe is an important public good - the common good - be it in the form of advocacy work, care for the sick, or a simple performance survey. There is meaning. There is joy. That is all we ask for in this world.

It is like planting a tree

It has been a year since we started this journey – this peculiar project where we hope to converge our skills and ideals. This project became a vehicle for us to build a grassroots web linking our own network to theirs. When barangays and public schools conduct youth development trainings, we get invited to facilitate and deliver inputs. This has been the consistent pattern, which was well pronounced during the recent months.

The platform we are provided for is an opportunity to frame our narrative as a youth project. In our inputs in the barangays and in the public school, we consistently emphasize the basic question our generation should ask and understand: Why are we poor? What made us poor? And what can we do about it?

These questions strike as the very core of our public mission. It is to reach as many young people as possible and to let them see that their personal growth and success as human beings are inextricably linked to the growth and success of their immediate community. We cannot realize our fullest potential in the absence of a community that nurtures our own development.   

Development therefore is ultimately an issue about power. Young people should understand how power flows, that is – being acted upon or the one who exert it. Considering our sheer size, our energy, our memory, which is unburdened by a past and our hearts that look into the future with brimming hope - we can choose to exert it. That spells the huge difference.

This idealism of owning our development as opposed to a development dictated by entrenched interests can be translated into practical doable things. It is as simple as reporting a broken streetlight or as complex as advocating a progressive policy. The tools are many but the idea is old and the same. We have to continue to work for and demand better public institutions.

Development as history tells us is dependent so much on the quality of our public institutions. Institution building is like planting a tree. Sometimes, we cannot see the fruits of our labor. It takes time to grow. It takes time to take root. It takes generations to fulfill. But in our time, we can say we did our best to bring a better world for the next generation to carry on.

So when asked why are we poor, never accept it as a gift from above. it is a social cancer. But unlike cancer, we have the ability to get rid of it. We have the number, the talent, and the heart to rebuild our institutions from inside and out.