Why regions fail

In this thoughtful piece, author Jason Bailey explores some of the structural causes of widespread poverty in eastern Kentucky. He refers to a recent book, called Why Nations Fail, that tries to answer the basic question of why some places are rich and others poor. According to that study, the answer has a lot to do with whether a nation's political and economic institutions are inclusive or extractive. He writes, "Inclusive institutions create a fair environment for competition, provide education and encourage innovation, distribute political power widely and encourage public participation, and have an accountable and responsive government. Extractive institutions are designed to benefit the few at the expense of the many. They discourage democratic participation, fail to enforce the rule of law or promote new economic activity, and are characterized by corruption and cronyism."