Why some nations fail while others succeed has become a mysterious question for many. However, in their book titled Why Nations Fail, authors Acemoglu and Robinson have finally revealed to their readers what really causes nations to fail, namely the extractive economic institutions that some governments have. This article will explore the current type of economic institutions in three different nations using knowledge from the book Why Nations Fail, as well as historical facts to support the claims provided. The economic institutions of the countries that will be explored are Venezuela, Mexico and Haiti. These countries will also be compared to the United States, a country that has inclusive economic institutions. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essayVenezuela has been experiencing economic decline for a long time. According to the article, “Venezuela is in its third year of recession and according to the International Monetary Fund, its economy is expected to contract by 10% this year” (Gillespie, 2016). The root cause of this recession can be traced back to the Venezuelan government leader, Chavez, who excessively focuses government spending on extractive economic institutions. In the book Why Nations Fail by Acemoglu and Robinson, it is stated that it is economic institutions that form the foundation of economic development, which is evident from the fact that economic institutions allow people to conveniently trade and build their own businesses. The topic of economic institutions being the heart of economic growth brings us to the topic of trade. Venezuela, as already mentioned, was a thriving country just ten years ago. This is mainly due to the fact that Venezuela is an oil-rich country. The purpose of trade is for countries to specialize in what they do best and export it while importing what they need. The problem with Venezuela was that, although they were successfully specializing in oil production, they didn't actually produce anything else or import goods from other countries. Furthermore, Venezuela exported none of the enormous amount of oil it produces. Through the article you can find out that Venezuela's main oil company, run by the government, is the main reason why none of these exports or imports take place. This too is evidence of how extractive economic institutions can ruin a nation. Due to the economic recession and lack of trade in Venezuela, inflation has become a tangible problem. Prices are skyrocketing and Venezuela experienced a staggering 475% increase in inflation in 2016 (Gillespie, 2016). Not only are prices high, but producers are unable to produce due to lack of trade. This ultimately results in food shortages and citizen suffering. While citizens of the United States can freely walk into any Publix or Winn Dixie and shop to their heart's content, citizens of Venezuela wait in long lines outside supermarkets only to find that the last bottle of milk was already bought 2 hours ago . . Food shortages are driving up Venezuela's mortality rate, with more and more children and elderly people malnourished. Mexico is the second country that is under exploration of economic institutions. As explained in Why Nations Fail, the reason Mexico currently has extractive economic institutions is because it is a country founded on extractive economic institutions. Historical facts and how a country began its government have a lot to do with.