Posted: October 2nd, 2013

extractive” economic institutions,

Questions/Passages: Pick one to write your reflection paper
1.  In Chapter 2, A&R contend that arguments and theories that point to “disease” as the major contributor to poverty and underdevelopment are wrong. Disease, they argue, is an effect and not a cause. What do they mean? Carefully explain how they link diseases to their preferred theory of why nations fail.
2.  Right at the beginning of the colonial conquest of South and North America, the conquerors
proceeded to impose “extractive” economic institutions, especially coercive labor practices on
the native as well as settler population. In places like Cajamarca this worked. But in places like
Jamestown it did not. Explain exactly what some of the “extractive” institutions and practices
were, and why they were successfully implemented in one area but failed in another.
3.  A&R argue that rapid growth is possible under extractive political institutions, such as
dictatorship. But they argue such growth is not sustainable. Explain exactly why, and what are
the reasons that cause these countries not to adopt the essential ingredients necessary for long
term growth?
4.  Why don’t leaders always choose prosperity? In other words, why would some leaders or
groups resist and oppose so-called “inclusive” institutions that could produce prosperity for the
entire country and guarantee sustained long term growth?
5.  What was the impact of the Glorious Revolution and the English Civil War in Britain on political
and economic institutions? Exactly how did these events eventually lead to the adoption of
inclusive institutions?

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