Ajaokuta Steel Works is based in Nigeria. According to the economic models described, since there is so much money and capital invested in this investment, there should be output, however there has been no steel produced. With the poor managment and corrupttion, This major investment has managed to go nowhere, regardless of the five billion dollars put in by the United States, and the 29 million per year in taxes by Nigeria. There has been so much money poured into this steel industry, and there is still no output, because of this corruption. This transitions from a focus on policies to a focus on instiutions. The economic models claimed that the policies were the problem, but this proves that they are not. The United States gave a huge amount of capital into this project, which should result in a well-rounded economy, but it does not. This proves that institutions are the problem, because this specific institution has the money and means necessary to produce a product and generate money, yet it doesnt because of greed and poor management. Had the steel institution had strong management, they could have taken the money and generated outcome.
Because of the poor leaders, creative innovation can be supressed and held back by powerful elites. More developed countries have a more well-rounded and complex system which allows creativity and freedom fron their citizens. The corrupt countries are the ones who hold their citizens down for the gain of a few wealthy and powerful individuals. Barden says that with innovations comes this more complex system that more developed countries possess. He describes two opinions: one of which states that some people are more likely to promote the individual. Helping the individual to gain wealth and proseperity and focusing on earned gains instead of fairness. On the other side, people view more equal societies are better for devlopment. In order to grow, there needs to be both the creating of new ideas and more efficient ways, and also feedback on these. If anyone were able to implement anything, nothing would get done. One side of people will reward success and punish failure, and the other side will challenge the more wealthy to help try to promote change. In order to shape development, we need to have these two things to enforce the values and goals of the country or region, and create a place where the citizens want to live.