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Why Nations Fail

Why Nations Fail

By Daron Acemoglu & James A. Robinson

The Origins of Power, Prosperity, and Poverty. Currency, 2012.

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17 mins read

15 Key insights

A brief summary of Why Nations Fail

A deep analysis of the differences between countries based on their political structure, from medieval Europe to modern Sierra Leone, explaining that civil society and rule by many sets the stage for economic success.

Key insights in Why Nations Fail

1
What do you get from this book? An exploration of economic disparity across the globe
2
One city straddling two countries displays how citizens on each side have experienced very different economic outcomes
3
Early US colonists sowed the seeds for the development of the strong institutions that have enabled America’s success
4
A tale of two entrepreneurs demonstrates the advantages of American institutions to business
5
Quite a few of the existing explanations for economic disparity don’t ring true—one key factor defines global inequality
6
Critical moments in a nation’s history allow them chances to break free from oppressive and extractive governments that stifle growth
7
Venice and Rome thrived economically for a time—until extractive institutions concentrated power in the hands of a small elite
8
Creative destruction is crucial to healthy economies, but often sparks fear in the powerful
9
The effects of slavery on Africa were economically as well as socially catastrophic, limiting its nations’ ability to industrialize
10
Inclusive institutions grow stronger in a “virtuous circle” where increased participation incentivizes people to preserve them
11
The vicious cycle of extractive institutions means new rulers often retain the disastrous structures of deposed ones
12
Extractive and inclusive institutions do not explain everything—history is not predetermined, and human decisions make all the difference
13
Summary of the key insights
14
Selected critiques in brief
15
Final word

Who should read Why Nations Fail

Politicians • historians • economics enthusiasts • college students • citizens of any country • those who want to know why some nations are more economically stable than others

About the author of Why Nations Fail

Daron Acemoglu is a professor of economics at the Massachusetts Institute of Technology (MIT). According to Research Papers in Economics, he was the most cited economist for 2005–2015. Also a professor, James A. Robinson teaches global conflict studies at the University of Chicago and focuses his research on Latin America and Africa. The two have written several books together including Why Nations Fail and The Narrow Corridor.

author avatar

Daron Acemoglu

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James A. Robinson

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