Economics Assigment - Essay Example

Indeed, it should also be pointed out that Chinese did not focus, especially, on differentiation, innovation and process development that are essentials of technological superiority. In addition, China’s biggest mistake was its failure to understand why technology is foremost for economy and how it contributes to economic growth and sustainable development. Part 2 Acemoglu and Robinson (2008) have thrown light over the importance of institutions and the impact of economic institutions on the prosperity of a nation.

Nevertheless, the authors argue that the economic institutions become stronger when harmony exists among political forces and institutions. In other words, political certainty averts the possibility of law and order crises, thereby creating a peaceful business environment for economic actors. Hence, the stronger the economic institutions, the better the policies devised for economic growth. Indeed, the policy-makers pay greater attention to provide trade incentives, to bring Foreign Direct Incentives, to initiate human resource development programmes and to promote technological development for enhancing organisational productivity and ensuring economies of scale (mass production).

For instance, the authors’ main argument is that the economic institutions are the actual difference between 2 nations because a nation with strong institutions becomes developed, whereas a nation with weak institutions remains poor and technologically backward. Part 3 As far as the differences between articles written by Landes (2006) and Acemoglu and Robinson (2008) are concerned, it should be pointed out that Landes (2006) is more concerned with the underlying reasons that contributed to China’s technological failure in comparison to developed Western nations, which have become technologically superior due to their proactive and innovation centred approaches.

China ruled out the possibility of implementing capitalism; therefore failed to reinforce competition among entities. Next, China also disregarded to adopt some pertinent western values thus remained technologically backward in past, whereas West flourished at a phenomenal rate. Acemoglu and Robinson (2008) are more concerned with institutionalism as they argue that economic institutions and policy – makers play their vital role in economic well-being of a country because they take into consideration economy as a whole and formulate strategies that benefit economic actors in a society in general.

Economics Assignment 2 Part 1 The article “Why Europe and the West? Why Not China?” has been composed by David Landes in which he has presented his arguments regarding the technological advancement of West and Europe and the reasons behind China’s failure in competing with Western economies. Landes (2006) highlighted that the western nations have always focused on developing their educational institutions so that they could establish a strong base for Research & Development activities. Nevertheless, the Western and European countries were aware of importance of technology and the benefits they could obtain in terms of economic efficiency and sustainability.

On the other hand, China lacked these valued as well as failed to thrive by acknowledging western achievements, capitalist values and technological knowledge base. Another major argument raised by Landes