Extractive institutions focus on extracting resources from many to advance benefits of a few, while inclusive institutions focus on creating a level playing field to maximize benefit using the same resources (Acemoglu and Robinson, 2012). In light of the approach taken to political and economic institutions by Acemoglu and Robinson in their book Why Nations Fail, both authors are expected to applaud the Harper government’s move because one organization was folded and merged with another to save resources and gather more skills in one place. Much has been written about the benefits offered by mergers. It is this success of mergers in many nations which has inspired many political leaders to take a closer look at this profitable strategy (Tschirhart & Bielefeld, 2012). A merger can prove to be a significant opportunity in times of economic contraction. It can help to solve the crisis. The Harper government is an example of an inclusive political institution which is important for sustained prosperity. Collaboration of two separate organizations signifies a shared-power approach to many issues encountered by them. It is impossible to sustain growth under extractive institutions because such institutions replace the old with the new in the economic realm. Acemoglu and Robinson would applaud this move because instead of replacing the old with the new, a merger occured leading to political and economic stability. It is argued in Why Nations Fail that nations become rich owing to more inclusive political institutions (Acemoglu and Robinson,
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(Political Sociology Essay Example | Topics and Well Written Essays - 500 Words)
“Political Sociology Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.net/sociology/765652-political-sociology.
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