The recent awarding of the Nobel Prize in Economics to Daron Acemoglu and James Robinson has highlighted the importance of political and economic institutions in the development of countries. The awarded economists have emphasized the relevance of a good inclusive institutional arrangement for the construction of a strong rule of law and the success of nations.
Acemoglu and Robinson, in their book "Why Nations Fail?", compare the living conditions in Nogales, a city divided by a wall in Arizona, United States, and Sonora, Mexico. Although they share history, culture, and geography, the substantial differences in living standards evidence the influence of institutions on economic development and the quality of life of the population.
In contrast to the vision of institutional strengthening, the series of reforms proposed by former president López Obrador in Mexico has raised concerns about a possible democratic and institutional weakening in the country. Although some of these reforms have advanced, their impact and viability continue to be a subject of debate and analysis.
Economist Robert J. Barro has pointed out that the rule of law is crucial for a country's economic growth, being a determining factor in promoting opportunities and development. Previous research highlights the importance of inclusive systems that foster citizen participation and equity against extractive models that concentrate power in elites.
In this line of thinking, it is essential to consider the role of institutions in the success or failure of a nation. A detailed analysis of the institutional arrangements and the internal power dynamics of a country allows for a better understanding of its evolution and economic performance. The quality of institutions, along with citizen participation and adherence to the rule of law, are fundamental pillars in building prosperous and equitable societies.
The discussion about the importance of institutions and governance in economic and social development remains relevant in the current context, where the strength of the rule of law and institutional inclusion are key to driving sustainable growth and equality of opportunity in nations.
