Chapter 6: Economic Development and Social Equity

If the majority of the governed people don’t accept a system, the system will not work well or for a long time. This is particularly true for a nation’s institutions. This insight can guide us toward a different definition of a nation: a complex social unit in which individuals, companies, and social groups in a self-governed space share internal resources and govern themselves under a series of institutional constraints (e.g., laws, cultures, customs) based on a shared ideology. Historical experience has repeatedly demonstrated that the willingness of ordinary people to participate in social cooperation is driven by their belief in the benefits to be gained through this cooperation. Government officials are no exception. No one wants to do something that is unprofitable. Therefore, when a government proposes a new system or reforms the old system, it must ensure that everyone can benefit from the changes or that anyone who loses benefits is fairly compensated for their loss if they hope to avoid strong resistance or even revolution.