Nations Fail

Ever since Adam Smith wrote on the “Wealth of Nations” the topic concerns social scientists. The discourse around the wealth of nations has become even more fundamental these days. Beyond wealth calculated in economic terms we are convinced to add well-being of the population as well as the state of the environment into the accounting procedures like national accounts. But wait a second. Similar to the term wealth we have to widen our perspective in what is considered to be a nation. Shifting borders through wars (Russia aggression on Ukraine) or separatist tendencies of regions, (re-)unification of Germany or Korea (eventually) show that the nation is a concept in flux. Considering migrants from former colonies still as having residential rights in the colonising country shows, there is more to nations than a one size fits all nation concept.
Daron Acemoglu and James A. Robinson had published the book on “Why nations fail. The origins of power, prosperity and poverty” already in 2012. On the 3rd of October Germany celebrates its re-unification only because the Russian dominated German Democratic Republic (and the other Eastern European satellite states under Russian control) can be considered as a failed state. These Russian dominated states crushed private initiatives and build corrupt systems where party allegiance and hierarchical structures were overemphasised. Following Acemoglu and Robinson (chapter 10) the lack of diffusion of prosperity is likely to be the root cause. Even similar to the French revolution, which brought about tough measures of redistribution, the external threats to the post-revolution France demanded subscription of masses into armies to defend the young republic against aristocratic rulers in the surroundings. If monarchy in France is a failed state, the post-revolution France survives due to high identification with the republican idea. The Soviet dominated Ukraine is a failed state, but the Ukraine of today resists due to its willingness to defend its own republican ideals. To get virtuous circles of development started, inclusiveness across the board is necessary. Leave nobody behind, seems to be a shortcut summary. It is much easier said than done. Loosing younger generations in the sense that they no longer subscribe or feel part of an inclusive wealth of the nation is a highly dangerous path. Failed states have a history in failed inclusive social and economic practices. Democracies are at risks just as much as authoritarian nations. However, democracies have better institutional settings to address the lack of inclusion and in multiple ways.
When I celebrate the 3rd of October in the Federal Republic of Germany I celebrate (1) the accomplished failure of the GDR, its undemocratically elected elites, corrupt institutions and the failure of the thousands of willing collaborators of the Russia-backed regime; (2) the peaceful resistance movement, (3) the relatively short-lived humanitarian focus of the Russian leadership at the time to not send in the tanks and (4) the willingness of the FRG to support 20 million new citizens for many years to come (5) the allies of the FRG to accept the potential security threat of a strengthened Federal Republic of Germany, which might entail a shift in the balance of power in Europe.
And yet, even in 2023 we pose questions on what is the concept of failure, when authoritarian regime can still survive for sooo long and some still accomplish extensions. We keep questioning the sense of the term “nation” in modern times and across the globe. Too many wars are still fought in the name of a “nation” even if only a handful of military-supported leaders and single autocrats try to impose wars in the name of some rather vague or plainly mistaken claim of nationhood.
On the 3rd of October we celebrate that “nations can fail” opening a path into a more prosperous and inclusive society. Some nations fail, just because they were no nation in the first place. The GDR was such an artefact of international compromise as part of the overall “balance of power” and the Cold War. The result of this process gives so much hope to other divided nations (Korea) or nations under authoritarian oppressive rule.