Saturday, February 25, 2017

Why Nations Fail ?

 I am reading this book in English, so I decided to abbreviate the main ideas in English too. Because it is something very complicated to translate it into Mongolian, despite the fact that I am understanding very well , it's a hard to find a right Mongolian word to display exact meaning.
1. So close yet so different
Actually if there is no point of studying past and history, if you're not gonna learn from the past mistakes and learn from the history. I find it useful to comprehend our similar traits in stages of failing and growing up as a country, by comparing with those countries which had been through our like situation and events.
So enjoyed reading this book very much. Plus I am spiced up this time's lesson with an interesting economics' a short video lecture relating to the topic.
The city of Nogales  is cut in half by a fence. If you look at the north side of the fence , you will see Nigolas Arizona Santa Cruz County , average household is 30000 USD a year  , the majority of the adults are at least high school graduates, population is healthy and have a high life expectancy by global standards. Health care system is just one of many services provided by government which is most taken for granted , such as electricity ,telephones , a sewage system , public health , a road network linking them to another cities and to rest of the US, law and order.On the other hand , in south of the fence , Nogales Sonaro ,residents live there live in a relatively prosperious part of Mexico , though average household is about one third  that in Nogales , Arizona.The Most of population even don't have ahigh school education and many teenagers are not in a school, infant mortality possibility is high , public health care system is poor , and law and order are in worse condition.
Why Latin American countries such as Mexico came to this point  ? We have to dig all through back t the history and what exactly happened here it is...
In early 14th century , first Spanish colonist ghost started twinkling on the Eastern seaboard of South America, Juan Diaz de Solis. i don't wanna mentio such a boring details of which year,what ship carried which things from S.A to Spain. Early history of colonism of Spain over South America suggests main traits which still has an effect on those countries' constitutional structure and mindset  and general patterns of how a country begins to be colonized by a higher power or a high claimed forced power.
1. in late 14th century , Spanish colonism and expansion in South American territory has one significant goal which was to carry all the possible natural resource , which at that time , mainly was gold and silver.To make and keep indigenous people uneducated and far from elite circle.A need in a lot of mines and miners leads to slavery forced or forced by repressing kings of S.A.Shortly ,attempt of Spanish strategized colonialism in South America was success. They convinced the headquerters of country with money and privilege to have unequal political rights and centralized only in hands of those local elites who are under an indirect and direct control of Spanish colonists.

2. after a century , in late of 15th century,England joins late for the hunting game of colonialism in North America. To Jamestown.(Virginia Company refers collectively to two joint stock companies chartered by James I on 10 April 1606[1][2][3] with the purposes of establishing settlements on the coast of North America.[4] The two companies, called the "Virginia Company of London" (or the London Company) and the "Virginia Company of Plymouth") England's Virgina Company's goal is failed.As North America developed , english elites tried time and time again to set up institutions that would heavily restrict the economic and political rights for all but a privileged few of the inhabitants of the colony, just as Spanish did.yet in each case ,model broke down.
So Question is now why not North America didn't fall into the temptation but Mexico did ? because of what ?
Because political rights were evenly distributed in the constitutions of America just so distributed so no one could have capacity buy that political right from those or scratch that right from their hand. On the other hand , in Mexico political right was in hand of oligopoly. If you can convince them with money and fame , it was easy to steer their power into advantage of colonists.
The world was changing in the 1870's and 80 's , no exception for the Latin America. Industrial revolution 1 and 2 , a lot had changed , there are more opportunity for foreign trade, transportation , and industrialization. Mexico was also aware of that kind of change,few could have had a chance to get rich by exporting natural resources and raw materials to the North America and Western Europe.Opening up to the globalization led not to the similar results for Latin America.It led to a further divergence , shaped by the existing institutional differences.
to be continued

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