Rania’s Reviews > Why Nations Fail: The Origins of Power, Prosperity, and Poverty > Status Update

Countries become failed states not because of their geography or their culture but because of the legacy of extractive institution, which concentrate the power and wealth in the hands of those controlling the states.

Nation fail today because their extractive institution do not create the incentives needed for people to save, invest and innovate.

Most government fear creative destruction as this would stabilize their current situation