Why great economies and nations fail?

History has shown us that nations and economies often fail, soon after they have become so strong that nothing seemed to come in their way. In recent history, the United Kingdom lost its position of the global leader as well as its empire in a matter of decades. Earlier, history is replete with stories about the decline of other empires, notably the Roman empire. Our own country, was perhaps the most important place in the entire world just a few centuries ago, a place of great learning, resources and wealth. By the time the British left in 1947, we stood almost 180 degrees away from our position a thousand years earlier. So what destroys great nations? What makes them so weak that others can steam roll them over?

The answer perhaps lies in the inability of a nation to recognize slow but definite changes in the environment. Failure to adjust to these changes and sometimes overconfidence in one's own abilities lead to a nation's downfall.

I am reminded of a story i heard at school. A frog thrown into boiling water would jump out quickly in order to save itself, but if a frog is put into cool water placed on a fire, it would not react. As the water heats up, the frog adjusts to it, never realizing that the water temperature is changing. By the time realization dawns on the frog, it is too late.

Are economies and nations like that? I think so. The Romans perhaps failed to foresee changes around them. That led to their downfall. Indians were busy amongst themselves, not realizing the growing power and the aspiration of the people in middle east. Later they, failed to see the changes in Europe and thus failed to ward off the British. The British themselves, at the pinnacle of their power, failed to see a changing world and lost their position by the time the Second World War ended. Now it seems, it is the time of the Americans? Would they be able to meet the challenges of a changing world in the future? I think not. History has a funny habit of repeating itself. My bet is that a few decades down the line, US shall no longer be the leading nation of the world.

Perhaps, it is time for India to rise again. Lets hope we do and become at least one of the leading nations of the world over the next few decades. Lets hope we take the bull by the horn and make use of all the opportunities. A few decades to enjoy prosperity and power, before history once again repeats itself.