I PEN these lines after reading the book, Why Nations Fail, a brilliant masterpiece — in my opinion — by Daron Acemoglu and James Robinson. Going through the book, one can easily pinpoint the failures in Pakistan’s institutions — political, military and economic.

The book’s authors clearly define the structure of institutions in periphery, semi-periphery and core countries of the world. They blame the feudal system and monarchy for stopping transformation in Third World countries. Their stance towards extractive and inclusive institutions is remarkable.

The former is the institution, which is a barrier in the way of progress. It does not accept change in its real shape. The example of such institutions is found in Gambia, Sierra Leone and Swaziland in Africa. These countries are less developed as their institutions support feudalism and monarchy systems. Their nature denies the production of incentives to labour and poor.

And the latter exists in Britian, France, Germany, China and the USA. Their institutions provide incentives and accept change. Modernity is in their nature. These are also beneficial for private businesses and are a catalyst for prosperity and development.

Another example is Mexico. It is less developed than the US despite the same geography and location. The US is developed and its inhabitants enjoy every luxury. In Mexico, the people lack basic infrastructure and health while sanitation conditions are miserable.

So the situation in both nations is not because of resources, strategic location and policies, but the implementation of policies, honesty of leaders, accountability of the elite and equal law and order for all.

Apply these principles to Pakistan, and we find our institutions similar to the extractive institutions that are pushing the masses towards darkness.

We can cry ourselves hoarse that we have democracy but feudalism lies at the roots of Pakistan and is the barrier in the path of progress.

Our neighbours, China and India, are progressing by leaps and bounds while we are stuck in the Panama case and political rhetorics.

Faisal Obaid

Lahore

Published in Dawn, August 6th, 2017