PDF Summary:The Narrow Corridor, by Daron Acemoglu and James A. Robinson

Every society is shaped by the tug-of-war between the governing and the governed. In The Narrow Corridor, Daron Acemoglu and James A. Robinson explore the delicate balance required for liberty to thrive. They argue that for freedom and prosperity to emerge, state power must be constrained by active societal engagement, creating a "Shackled Leviathan" that provides public services and uplifts its citizens rather than oppressing them.

Acemoglu and Robinson draw insights from political theory, history, and modern case studies to illuminate the nuances of this dynamic. They show how too little state capacity leads to chaos, while too much power in the state's hands enables oppression. But striking the right balance allows both government and society to flourish through their ongoing competition—what the authors call the "Red Queen effect." Their analysis offers a framework for understanding why liberty has blossomed in some societies while withering in others.

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The Red Queen effect may, however, also create a very different dynamic, one wherein the state's increasing capacity erodes the existing "cage of norms" because it undermines the logic of these norms, introduces new institutions and opportunities, and creates a new social reality. The establishment of robust legal structures and the fortification of judicial institutions in both Athens and England are a prominent example. Political institutions such as the Areopagus and Parliament emerged, diminishing the control previously held by family and kinship networks in regulating behavior, and progressively assumed prominence in settling disputes and maintaining legal standards, which in turn shifted societal views on who holds legitimate power in issues of justice and morality.

A restrained Leviathan leads to certain impacts on both the economy and society.

Acemoglu and Robinson maintain that societal progress requires a government that not only provides oversight but is also constrained and accountable, particularly in safeguarding the rights of the underprivileged, promoting gender equality, and expanding economic possibilities for all. The writers argue that significant progress hinges on the Shackled Leviathan, which not only utilizes its power to level the playing field of opportunities but also works in partnership with society to dismantle the obstacles posed by conventional norms.

Establishing an environment conducive to economic expansion by promoting widespread participation in the economy, nurturing innovation, and facilitating the enhancement of individuals' social status.

Acemoglu and Robinson present the view that the economic landscape molded by the Shackled Leviathan is distinctly different from the one emerging under other governance frameworks. A variety of interconnected and synergistic processes contribute to prosperity and economic growth in this scenario. Essential amenities and services, such as transportation networks, waterways, and a dependable legal framework, foster the expansion of innovative businesses and entrepreneurial activities, while simultaneously breaking down entrenched power structures and governance systems that limit economic possibilities and individual liberty. The authors underscore the importance of a situation akin to the Red Queen effect, proposing that the improvement of the Shackled Leviathan in delivering services and equitably distributing economic opportunities hinges on public trust in its capacity to regulate potential abuses of state authority. The Leviathan's ability to reduce and eliminate social norms that constrain economic decisions, as seen in the historical prohibitions on interest for loans during Europe's Medieval era, is vital in creating chances and motivations.

Acemoglu and Robinson emphasize the significant economic transformations that took place at the end of the medieval era as a key illustration. The writers contend that in Italy, the collective of merchants created an environment conducive to long-distance commerce and further spurred a variety of financial and economic advancements, as these traders sought to navigate through the complexities of constrained credit, diminishing risks, and the upholding of legal agreements, challenges that were amplified by the prevalent beliefs and superstitions of the Medieval European era. The progress was markedly shaped by the changing structures within the Italian city-states and the capacity of merchants and financiers to introduce innovative concepts and avenues, as well as to devise strategies for circumventing or outright abandoning aspects of long-standing traditions that impeded commerce and financial activities, frequently receiving tacit or explicit support from the government. Innovative approaches were devised as strategies to circumvent the limitations on interest-accruing lending, which included the establishment of novel contractual and accounting methods, along with the advent of negotiable instruments, the formation of joint venture arrangements, and the subtle development of contract-based trade without physical exchange of goods. The dynamic between state power and collective liberties within these local governing bodies sparked progress, resulting in unparalleled economic expansion, workforce skill development, academic achievements, and technological breakthroughs on the peninsula.

Creating public facilities and frameworks that bolster individual liberty and guarantee equitable chances for progress throughout society and its economic structures.

Acemoglu and Robinson's argument is heavily impacted by the government's capacity to provide infrastructure, implement social programs, and deliver public services. This entity is referred to as the Shackled Leviathan. The authors argue that a strong government is essential not only to dispel fear and conflict but also to create an environment where individuals can pursue economic and social advancement on an equal footing, thereby safeguarding personal freedoms. The governance system should be organized to ensure that quality services are accessible to all, rather than being distributed in a way that benefits only a privileged minority at the expense of the vast majority.

The authors strengthen their case by examining the historical context from the era of ancient Athens as well as modern examples from the United States. In their accounts, Athenians were only able to exercise their political freedoms, and to participate effectively as political actors, because the state under the auspices of Solon and Cleisthenes dismantled debt peonage, standardized weights and measures, developed roads, and expanded public education. The government escalated its efforts in response to the continuous public demand for a system that is fairer, more effective, and devoid of corruption, a phenomenon commonly known as the Red Queen effect. During the 19th century, the United States Post Office became a hallmark of American society, with the government committed to fulfilling its duties by establishing reliable and efficient methods for disseminating information across its vast territories. This, in turn, led to a marked increase in patenting and innovation, which is frequently regarded as a hallmark of the United States' economic triumph, largely attributable to the system's extensive impact across various social layers and regions, providing opportunities and incentives to individuals from a multitude of backgrounds and places throughout the country.

Achieving freedom from the limitations that societal norms dictate.

Acemoglu and Robinson highlight a surprising role taken on by the Shackled Leviathan after its formation. This role involves dismantling the cage that other types of states, such as those without any real power, will often strengthen and exploit for their own advantage. Why engage in dismantling the confinement? The progression of this development hinges not on the intentional guidance of the state's architects; instead, it often progresses in spite of resistance and barriers to their efforts and liberties from powerful factions within society that seek independence. The writers argue that the Shackled Leviathan epitomizes the optimal structure for diminishing societal limitations and encouraging changes in traditions and behaviors that might encounter resistance in different political settings where the state's influence is either lacking or excessively dominant, because it balances power with the citizens.

The strategies employed by the city-states of Italy to tackle the widespread Medieval European bans on interest-bearing loans serve as prime examples of the dynamics at play. The growth of the merchant class's entrepreneurial spirit, which paved the way for the acceptance of interest-bearing loans, was significantly reinforced by the endorsement and promotion from government officials, a crucial element that propelled the growth of trade, industry, and the overall surge in economic activity. The slow collapse of the feudal structure, marked by rigid social hierarchies and complex rules dictating behavior, marked a significant transition for people in Medieval Europe when the state, with backing from the community, began to set and strengthen new norms that aligned with individual liberties.

Context

• A "Shackled Leviathan" is a concept that describes a government with significant power but is constrained by societal frameworks and institutions to prevent tyranny. It is characterized by aligning with the common goals of the people and drawing strength from the limitations placed upon it, making it more efficient than unchecked governing systems. This type of Leviathan is distinguished by its ability to provide public services, ensure legal adherence, and protect citizens while being held accountable by democratic institutions and societal mobilization. The emergence of a Shackled Leviathan involves a slow and often contentious process that requires a delicate balance between state power and societal influence.
• The Red Queen dynamics, inspired by Lewis Carroll's character, symbolize the continuous struggle for survival and adaptation in evolving systems. In the context of societal and governmental evolution, it represents the need for constant change and improvement to keep pace with challenges and competitors. This concept highlights the dynamic nature of progress, where entities must continually innovate to maintain their position and relevance. The comparison underscores how both societies and governments must adapt and evolve to thrive in changing environments.
• Solon and Cleisthenes were prominent figures in ancient Athens known for their reforms in the political and social structures of the city-state. Solon, a statesman and lawmaker, introduced measures to address economic inequality and political unrest, while Cleisthenes is credited with laying the foundations of Athenian democracy. Muhammad was the founder of Islam and a key historical figure in the development of the religion, known for his teachings and role in establishing the early Muslim community in Medina and later in Mecca.
• The concept of dismantling societal limitations and challenging traditional norms involves the Shackled Leviathan balancing power with citizens to promote individual liberties. This dynamic allows for the gradual erosion of constraints imposed by societal norms, fostering changes in behaviors and traditions. The state's role in this process is crucial, as it works alongside societal forces to create an environment that encourages progress and freedom from restrictive norms. Through this interplay, the Shackled Leviathan helps to navigate societal transformations and promote a more inclusive and dynamic society.

The Bureaucratic Colossus

This part describes a government that is neither missing in action nor genuinely tyrannical, and it also avoids the characteristics typically linked with a tyrannical behemoth. The authors, Acemoglu and Robinson, describe these types of government systems as "Paper Leviathans." A more detailed analysis reveals that these entities have only a thin veneer of administrative competence, even though they project an image of being contemporary and methodically structured states. The authors argue that the development of certain states is partly attributed to the rulers' awareness that enhancing their power might provoke opposition to their rule, and they assert that a governance system marked by arbitrary personal decision-making and inconsistent enforcement of laws and institutions offers more opportunities for exploitation than a system that operates in an impersonal and bureaucratic manner, as Weber outlined.

Characteristics that characterize the administrative giant

In their analysis of the Paper Leviathan, the authors highlight the worldwide challenge of achieving and maintaining a delicate balance between state authority and the demands of society, which is responsible for the corridor's slender nature. The concept of a 'Paper Leviathan' depicts a specific situation where balance is upset, highlighting traits of administrations that are deficient in the capacity to govern efficiently and in the democratic oversight of their power.

In some areas, the state demonstrates autocratic inclinations and a tendency towards suppression, yet it is also characterized by a chaotic administrative structure and legal system that finds it challenging to provide essential support to the populace.

The formation of Paper Leviathans is driven by the same fear that leads to resistance against the formation of states—the fear of despotism. The ruling class's apprehensions regarding tyranny are not due to a fear of oppression, but rather from recognizing that enhancing the power of the state and intensifying control over the populace might incite resistance towards them. Numerous bureaucratic yet underpowered states often exhibit a paradoxical tendency towards despotism. Efforts to build a state must be met with swift and harsh suppression. However, it suggests that individuals with authority, particularly the elite, often oppose the creation of a state with strong institutions that foster advancement based on merit, guarantee impartial judicial proceedings, and offer essential safeguards, because such frameworks curtail unchecked power and consequently diminish their political sway.

Argentina illustrates the interplay of these forces. During the 2000s, Argentina was notable for its large bureaucratic structure, a variety of government-backed social programs, and the existence of a national leader and armed forces, all of which were augmented by its worldwide diplomatic engagements. The administration was encumbered by the presence of 'gnocchi,' a term for political hires who, despite being listed on the payroll, frequently failed to show up for work. The government of Argentina encountered difficulties in controlling inflation, measuring the nation's financial productivity, enforcing taxation laws, and maintaining its judicial framework. In Argentina, the functionality of the government was heavily dependent on personal connections and mutual assurances, which obstructed the populace's entitlement to publicly available services.

A superficial appearance of a functioning modern state that masks its fundamental inability or unwillingness to exercise real authority and control in most domains

The clear lack of influence that Paper Leviathans have in penetrating society is evident. Public services are significantly lacking because of inadequate basic infrastructure, along with a shortfall in the implementation of legal statutes and the delivery of societal initiatives. Appointing individuals to positions without considering their qualifications frequently leads to disorder and unethical conduct. But it is also, in Acemoglu and Robinson's interpretation, because these states are unwilling to strengthen the rule of law and create the sort of impersonal state institutions that would make it much harder to control, manipulate, and abuse the state for their own advantage.

The governance deficiencies of Paper Leviathans were glaringly apparent within Colombia's territorial confines. This vast region, marked by its rugged terrain and waterways, lacked essential infrastructure, especially in areas distant from significant city hubs. Well into the 20th century, many important regions within the country were still secluded, with no roads connecting them to the capital or other major urban centers. Robinson recounts the story of an essential route linking Pasto and Mocoa, which, despite its clear importance for national defense, Colombian authorities had contemplated since the 19th century yet never fully committed to completing or maintaining. Consequently, Colombia remained a nation characterized by deep social cleavages, with instances of unity arising sporadically, usually in response to issues of regional significance. During the 1700s in Britain, the enhancement of transportation and communication systems was pivotal in fostering greater public engagement with the country's governance, leading to widespread calls for significant alterations to the legal framework and institutional constructs. In contrast, in Colombia, various movements, despite their ambitious objectives, typically settled for superficial state concessions rather than meaningful changes and had limited ability to monitor government conduct.

When a state is dysfunctional and ineffective, it fosters an atmosphere rife with fear, hostility, and domination, which oppresses its people.

Even when not faced with opposition, Leviathans often fail to curb their destructive tendencies. Political leaders frequently succumb to the temptation of maintaining their authority through the use of oppressive strategies and stringent control. Nevertheless, the writers argue that another governance system, which they refer to as the "Bureaucratic Leviathan," is equally detrimental to individual liberties and is capable of perpetuating oppression. A government lacking organized administration and control often results in unpredictable and arbitrary tyranny, just as potent in spreading fear and suppressing the populace.

The lack of capacity that leads to substandard public services and the failure to collect taxes and develop infrastructure also often means that coercion is disproportionately directed at those who are most defenseless, rather than being applied widely and consistently. Colombia exemplifies this phenomenon. In Colombia, the elite managed to quash opposition and use the state's authority to protect their interests, not by employing a unified, centrally managed structure but instead through a decentralized approach to enforcing their dominance. For instance, Robinson emphasizes the intriguing detail that landowners established their own armed groups, which subsequently functioned in conjunction with state authorities. The approach that resulted in prevalent state-sanctioned violence not only ignited prolonged domestic conflict but also occupied the voids left by the disintegration of governmental control across numerous areas of the nation. The scandal known as "false positives" similarly involved the mistreatment of Colombian citizens. This heinous act, in which innocent civilians were slain by state security personnel who then mischaracterized them as insurgents to misleadingly boast of triumph in the battle against terror, highlights the severe risk individuals encounter when confronted with a disorganized and malfunctioning government apparatus.

The persistence and formation of governmental entities with established administrative frameworks.

The historical colonization of different areas has had a profound impact on the evolution of governmental structures, which Acemoglu and Robinson describe as bureaucratic behemoths. Acemoglu and Robinson argue that the Paper Leviathan arose from the interactions between colonial rulers and the communities they governed. To understand why the structured governmental system persists, it's crucial to recognize that its stability is shaped by numerous factors beyond colonial legacy, particularly the incentives offered by the international community of nations to rulers who focus on their personal agendas.

The ruling class's attempts to strengthen governmental functions may trigger societal resistance, leading those in power to re-evaluate and scale back their ambitions for state development.

A major obstacle to evolving administrative governments into more effective bodies is the risk that these changes might result in increased public participation. The phenomenon is described by the authors as embodying the intrinsic interplay between societal structures and governmental bodies, which they refer to as the "mobilization effect." While it might appear that those in charge of the bureaucratic state have an authoritarian demeanor, they often voice apprehension that by strengthening state institutions, they might inadvertently empower the very individuals they currently govern. They are concerned that increased collaboration among citizens could lead to the overthrow of their authority or incite competing groups to vie for control of the government. The authors illustrate their point with a variety of examples, showing that bureaucratic institutions tend to promote division, discourage unity, and actively work to dismantle citizen initiatives aimed at self-organization when such divisions do not occur organically.

This reasoning illuminates the frequent shortfall of many initiatives aimed at enhancing key functions of government, which, despite their apparent design, often fail to achieve their intended objectives. The progress in road infrastructure in Colombia stands as a significant example. Colombia's lack of a cohesive and participatory society can be attributed primarily to the state's inability to create a unified network of roads connecting different areas, which consequently empowered local leaders to exert significant control over the country's political landscape. The investigation conducted by Robinson indicates that the shortfall cannot be attributed solely to a scarcity of resources or expertise. Members of the elite in Colombia harbored concerns that by improving infrastructure, communication, and public engagement, they might inadvertently empower different social factions, which could undermine their control over the government and put their wealthy and powerful status at risk.

The state becomes fragile and lacks cohesion when it is shaped by consolidating control through judicial and administrative mechanisms, which involves favoring allies and suppressing opponents.

Acemoglu and Robinson identify an additional element that hinders the Paper Leviathans' progress in enhancing their organizational effectiveness, which often leads to their failure to meet the needs of their citizens, even though they possess the required resources and expertise. The governing elite is skilled at exploiting disorder and corruption, which are characteristic of the Paper Leviathan, particularly in the case of Argentina. The authors argue that political entities supporting Paper Leviathans become significantly powerful by exerting control over governmental operations, swaying judicial decisions, and overseeing police actions through the allocation of contracts, governmental positions, and benefits to their supporters. Establishing robust state institutions, cultivating an administrative workforce, and guaranteeing an impartial judiciary would benefit the country, yet it would also reduce the current leaders' ability to give preferential treatment to their allies and impose sanctions on their opponents. The writers indicate that a multitude of governing entities appear to resist measures designed to reduce corruption and inefficiency, particularly when these suggestions originate from global organizations such as the World Bank. They oppose alterations because preserving the current state of affairs benefits them.

The tactics utilized by Paper Leviathans exemplify the fundamental rationale. In his examination of the economic development challenges that Ghana faced after gaining independence, Killick notes that the country's leader deliberately undermined efficient project planning by starting the development of a facility for processing mango products, even though there was a clear lack of demand for such products both domestically and internationally. He curtailed the expansion of Ghanaian-run businesses, fearing that their success could undermine his control over political power. In another instance, Bates, in his study "Markets and States in Tropical Africa," demonstrated how African governments, although they possessed the power to levy taxes and regulate markets, chose to keep prices low and allocate resources in ways that favored their supporters while disadvantaging their opponents. The ruling class utilized strategies that solidified their control and simultaneously placed considerable constraints on societies burdened by onerous bureaucratic structures.

Colonization has historically led to the establishment of governance systems that are both indirect and exploitative, with national borders that were carelessly delineated, contributing to a lack of cohesion within the country and a diminished participation of citizens in the mechanisms of governance.

European colonialism was pivotal in laying the groundwork that led to the emergence of Paper Leviathans, a point underscored by Acemoglu and Robinson. The British, Belgians, French, and Dutch, along with the Spanish and Portuguese, established governance systems akin to their own in the regions they dominated, primarily to take advantage of the indigenous peoples. Consequently, it did not succeed in fostering the growth of governmental structures capable of delivering communal services, implementing legislation, or addressing the concerns of the community in an unbiased manner.

Instead, many colonies adopted a governance approach termed "indirect rule," where they assigned responsibilities like dispute resolution, law enforcement, and labor organization to regional authorities, including chiefs, elders, priests, and religious groups in Africa, or the caciques in the Americas. Meanwhile, the colonial rulers concentrated on resource extraction, paying scant attention to nurturing the region's own organizational structures or governance skills, which is reflected in the current conditions found in Colombia and several other Latin American countries. The borders of the nations that became independent after colonial rule were often drawn in European cities, often ignoring the existing community, religious, language, or historical boundaries in those areas, leading to the creation of states with fragmented national identities. The harsh environment impeded the development of a structured, strong government. They established societies characterized by profound inequalities and subjugation, divided along ethnic or geographical boundaries, with fragile and frequently dishonest organizations that emphasized oppression and favoritism over fostering a sense of shared belonging, providing communal facilities, or safeguarding personal freedoms. The region remained under the influence of characteristics that originated during the colonial period, even after its end.

The initial president of Ghana, Kwame Nkrumah, exemplifies the dynamics in question. Nkrumah, a charismatic leader with aspirations for transforming his country into a contemporary, industrialized state, soon recognized that the absence of a cohesive national administrative framework would pose considerable obstacles from local Ghanaians who were doubtful about his leadership. He opted to establish a government rooted in the patronage networks and ethnic coalitions that were within his control. The result epitomized a colossal bureaucracy.

The worldwide system of independent nations confers legitimacy and resources on bureaucratic states, thereby reinforcing their power even though their actual effectiveness may be restricted.

Acemoglu and Robinson pinpoint a factor from the post-World War II era that has continued to support the existence of Paper Leviathans. After World War II ended, with backing from the United States, a new international framework was established, leading to the creation of the United Nations and the Bretton Woods institutions such as the International Monetary Fund and the World Bank, while also solidifying and officially acknowledging the idea of sovereign nation-states. The creation of a worldwide state structure was motivated by the understanding that the former system failed to prevent the devastating worldwide conflicts that took place in the early 20th century. A significant aspect was the recognition of nearly every country as a legitimate entity, even those of dubious legitimacy that subjected their citizens to severe oppression. This method promoted worldwide cooperation and established balance after colonial rule, yet it also set in motion a forceful dynamic that prevented many societies from accessing the path to the corridor, thus solidifying the endurance of Paper Leviathans.

The appointment of Robert Mugabe, the then-president of Zimbabwe, as a "goodwill ambassador" by the World Health Organization exemplifies the unexpected consequences that can stem from such decisions. Mugabe's regime, infamous for its suppression of dissent and egregious human rights violations, also oversaw the decline of Zimbabwe's medical infrastructure, yet he continued to receive praise, backing, and recognition from global organizations. Despite their restricted abilities, numerous Paper Leviathans continue to wield control over resources, thereby eroding the public's ability to unite in opposition to the governing elite and their associates. The global framework of governance may have contributed to some degree of stability, yet it appears to have done so at the cost of making the journey toward affluence narrower and more hazardous.

Other Perspectives

• While Acemoglu and Robinson's concept of "Paper Leviathans" highlights the weaknesses in certain states' governance, it could be argued that the term oversimplifies the complexities and variations within different governments, potentially overlooking the unique historical, cultural, and socio-economic factors that contribute to a state's administrative capacity.
• The idea that governance marked by arbitrary decision-making offers more opportunities for exploitation might be countered by noting that in some contexts, flexible decision-making can allow for rapid response to unique situations that a rigid bureaucratic system might fail to address effectively.
• The assertion that Paper Leviathans project a modern image but lack real authority could be challenged by pointing out instances where such states have successfully implemented policies and reforms, indicating that the presence of some bureaucratic inefficiencies does not necessarily negate a state's overall authority or effectiveness.
• The claim that Paper Leviathans struggle to provide essential support to the populace might be met with examples of states that, despite bureaucratic challenges, have managed to deliver significant public services and improve the welfare of their citizens.
• The argument that fear of despotism drives the formation of Paper Leviathans could be countered by suggesting that in some cases, the formation of such states may be more a result of pragmatic adaptation to existing political and economic constraints rather than a deliberate strategy to avoid despotism.
• The notion that bureaucratic states may be equally detrimental to individual liberties could be balanced by highlighting cases where bureaucratic structures have provided stability and rule of law, which in turn have protected individual liberties.
• The view that dysfunctional states foster fear, hostility, and domination might be nuanced by considering that even in states with significant dysfunction, there can be pockets of effective governance and civil society that work to counteract these negative dynamics.
• The idea that ineffective states oppress their people could be met with the argument that state effectiveness is a relative measure and that even in states deemed ineffective, there may be significant efforts and progress toward improving governance and reducing oppression.
• The assertion that historical colonization impacts governmental structures might be complemented by acknowledging the role of post-colonial leadership, international aid, and global economic systems in shaping current governmental structures.
• The claim that the post-World War II international system reinforces bureaucratic states could be challenged by pointing out the numerous instances where international interventions and aid have supported state-building efforts and contributed to the development of more effective governance in some countries.

Historical Examples and Case Studies

In this part, the authors analyze the diverse dynamics of governance and citizenry, demonstrating how their theory is relevant to the multitude of historical and geographical paths of political evolution around the world. The authors further illustrate how such configurations significantly influence the prospects for attaining liberty, the possibility of strife, and the probability of economic prosperity.

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Other Perspectives

• The relevance of the theory to various historical and geographical paths might be overstated, as each case has unique factors that may not be fully accounted for by a single theoretical framework.
• The influence of governance configurations on liberty, strife, and economic prosperity could be more correlative than causative, with other variables playing significant roles.
• The selection of historical examples and case studies may suffer from confirmation bias, where only supporting evidence is presented, while contradictory cases are ignored.
• The complexity of political evolution might not be fully captured by the theory, as it could oversimplify the interplay of historical, cultural, social, and economic factors.
• The theory may not adequately address the role of individual agency and the impact of exceptional leaders or events that can significantly alter the course of political evolution.
• The assumption that there is a one-size-fits-all model for governance and economic prosperity may not hold true, as different societies may thrive under different systems.
• The analysis might not sufficiently consider the influence of external forces, such as colonialism, globalization, and international relations, on governance and citizenry dynamics.