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Why Nations Fail: The Origins of Power, Prosperity, and Poverty

Acemoglu, Daron; Robinson, James

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Brilliant and engagingly written, Why Nations Fail answers the question that has stumped the experts for centuries: Why are some nations rich and others poor, divided by wealth and poverty, health and sickness, food and famine?

Is it culture, the weather, geography? Perhaps ignorance of what the right policies are?

Simply, no. None of these factors is either definitive or destiny. Otherwise, how to explain why Botswana has become one of the fastest growing countries in the world, while other African nations, such as Zimbabwe, the Congo, and Sierra Leone, are mired in poverty and violence?

Daron Acemoglu and James Robinson conclusively show that it is man-made political and economic institutions that underlie economic success (or lack of it). Korea, to take just one of their fascinating examples, is a remarkably homogeneous nation, yet the people of North Korea are among the poorest on earth while their brothers and sisters in South Korea are among the richest. The south forged a society that created incentives, rewarded innovation, and allowed everyone to participate in economic opportunities. The economic success thus spurred was sustained because the government became accountable and responsive to citizens and the great mass of people. Sadly, the people of the north have endured decades of famine, political repression, and very different economic institutions—with no end in sight. The differences between the Koreas is due to the politics that created these completely different institutional trajectories.

Based on fifteen years of original research Acemoglu and Robinson marshall extraordinary historical evidence from the Roman Empire, the Mayan city-states, medieval Venice, the Soviet Union, Latin America, England, Europe, the United States, and Africa to build a new theory of political economy with great relevance for the big questions of today, including:

   - China has built an authoritarian growth machine. Will it continue to grow at such high speed and overwhelm the West?
   - Are America’s best days behind it? Are we moving from a virtuous circle in which efforts by elites to aggrandize power are resisted to a vicious one that enriches and empowers a small minority?
   - What is the most effective way to help move billions of people from the rut of poverty to prosperity? More
philanthropy from the wealthy nations of the West? Or learning the hard-won lessons of Acemoglu and Robinson’s breakthrough ideas on the interplay between inclusive political and economic institutions?

Why Nations Fail will change the way you look at—and understand—the world.

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Review:

Guest Reviewer: Charles C. Mann on Why Nations Fail
Charles C. Mann, a correspondent for The Atlantic, Science, and Wired, has written for Fortune, The New York Times, Smithsonian, Technology Review, Vanity Fair, and The Washington Post, as well as for the TV network HBO and the series Law & Order. A three-time National Magazine Award finalist, he is the recipient of writing awards from the American Bar Association, the American Institute of Physics, the Alfred P. Sloan Foundation, and the Lannan Foundation. His 1491 won the National Academies Communication Award for the best book of the year. He lives in Amherst, Massachusetts.

A few years ago, while I was researching a book on the history of globalization, I suddenly realized that I was seeing the same two names on a lot of the smartest stuff I was reading. The names belonged to two economists, Daron Acemoglu and James Robinson. Much of their work focused on a single question: Why are poor places poor, and is there something we can do about it?

This is one of the most important questions imaginable in economics—indeed, in the world today. It is also one of the most politically fraught. In working on my book, I read numerous attempts by economists, historians and other researchers to explain why most of North America and Europe is wealthy and why most of Asia, Africa and Latin America is not. But these usually boiled down to claims that rich nations had won the game by cheating poor places or that poor places had inherently inferior cultures (or locations) which prevented them from rising. Conservative economists used the discussion as a chance to extol the wide-open markets they already believed in; liberal economists used it to make the attacks on unrestrained capitalism they were already making. And all too often both seemed wildly ignorant of history. I can’t recall encountering another subject on which so many people expended so much energy to generate so little light.

Acemoglu and Robinson were in another category entirely. They assembled what is, in effect, a gigantic, super-complete database of every country’s history, and used it to ask questions—wicked smart questions. They found unexpected answers—ones that may not satisfy partisans of either side, but have the ring of truth.

Why Nations Fail is full of astounding stories. I ended up carrying the book around, asking friends, “Did you know this?” The stories make it a pleasure to read. More important, though, Acemoglu and Robinson changed my perspective on how the world works. My suspicion is that I won’t be the only person to say this after reading Why Nations Fail.

About the Author:

DARON ACEMOGLU is the Killian Professor of Economics at MIT. In 2005 he received the John Bates Clark Medal awarded to economists under forty judged to have made the most significant contribution to economic thought and knowledge.


JAMES A. ROBINSON, a political scientist and an economist, is the David Florence Professor of Government at Harvard University. A world-renowned expert on Latin America and Africa, he has worked in Botswana, Mauritius, Sierra Leone, and South Africa.

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Book Description Crown Business, 2012. Book Condition: New. Brand New, Unread Copy in Perfect Condition. A+ Customer Service! Summary: " Why Nations Fail is a truly awesome book. Acemoglu and Robinson tackle one of the most important problems in the social sciences-a question that has bedeviled leading thinkers for centuries-and offer an answer that is brilliant in its simplicity and power. A wonderfully readable mix of history, political science, and economics, this book will change the way we think about economic development. Why Nations Fail is a must-read book." -Steven Levitt, coauthor of Freakonomics "You will have three reasons to love this book. It's about national income differences within the modern world, perhaps the biggest problem facing the world today. It's peppered with fascinating stories that will make you a spellbinder at cocktail parties-such as why Botswana is prospering and Sierra Leone isn't. And it's a great read. Like me, you may succumb to reading it in one go, and then you may come back to it again and again." -Jared Diamond, Pulitzer Prizewinning author of the bestsellers Guns, Germs, and Steel and Collapse "A compelling and highly readable book. And [the] conclusion is a cheering one: the authoritarian 'extractive' institutions like the ones that drive growth in China today are bound to run out of steam. Without the inclusive institutions that first evolved in the West, sustainable growth is impossible, because only a truly free society can foster genuine innovation and the creative destruction that is its corollary." -Niall Ferguson, author of The Ascent of Money "Some time ago a little-known Scottish philosopher wrote a book on what makes nations succeed and what makes them fail. The Wealth of Nations is still being read today. With the same perspicacity and with the same broad historical perspective, Daron Acemoglu and James Robinson have retackled this same question for our own times. Two centuries from now our great-great- . . . -great grandchildren will be, similarly, reading Why Nations Fail." -George Akerlof, Nobel laureate in economics, 2001 " Why Nations Fail is so good in so many ways that I despair of listing them all. It explains huge swathes of human history. It is equally at home in Asia, Africa and the Americas. It is fair to left and right and every flavor in between. It doesn't pull punches but doesn't insult just to gain attention. It illuminates the past as it gives us a new way to think about the present. It is that rare book in economics that convinces the reader that the authors want the best for ordinary people. It will provide scholars with years of argument and ordinary readers with years of did-you-know-that dinner conversation. It has some jokes, which are always welcome. It is an excellent book and should be purchased forthwith, so to encourage the authors to keep working." -Charles C. Mann, author of 1491 and 1493 "Imagine sitting around a table listening to Jared Diamond, Joseph Schumpeter, and James Madison reflect on over two thousand years of political and economic history. Imagine that they weave their ideas into a coherent theoretical framework based on limiting extraction, promoting creative destruction, and creating strong political institutions that share power and you begin to see the contribution of this brilliant and engagingly written book." -Scott E. Page, University of Michigan and Santa Fre Institute "This fascinating and readable book centers on the complex joint evolution of political and economic institutions, in good directions and bad. It strikes a delicate balance between the logic of political and economic behavior and the shifts in direction created by contingent historical events, large and small at 'critical junctures.'' Acemoglu and Robinson provide an enormous range of historical examples to show how such shifts can tilt toward favorable institutions, progressive innovation and economic success or toward repressive institutions and eventual decay or stagnation. Somehow they can generate both exciteme. Bookseller Inventory # ABE_book_new_0307719219

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Book Description Random House USA Inc, United States, 2012. Hardback. Book Condition: New. rough cut.. 234 x 155 mm. Language: English Brand New Book. Brilliant and engagingly written, Why Nations Fail answers the question that has stumped the experts for centuries: Why are some nations rich and others poor, divided by wealth and poverty, health and sickness, food and famine? Is it culture, the weather, geography? Perhaps ignorance of what the right policies are? Simply, no. None of these factors is either definitive or destiny. Otherwise, how to explain why Botswana has become one of the fastest growing countries in the world, while other African nations, such as Zimbabwe, the Congo, and Sierra Leone, are mired in poverty and violence? Daron Acemoglu and James Robinson conclusively show that it is man-made political and economic institutions that underlie economic success (or lack of it). Korea, to take just one of their fascinating examples, is a remarkably homogeneous nation, yet the people of North Korea are among the poorest on earth while their brothers and sisters in South Korea are among the richest. The south forged a society that created incentives, rewarded innovation, and allowed everyone to participate in economic opportunities. The economic success thus spurred was sustained because the government became accountable and responsive to citizens and the great mass of people. Sadly, the people of the north have endured decades of famine, political repression, and very different economic institutions--with no end in sight. The differences between the Koreas is due to the politics that created these completely different institutional trajectories. Based on fifteen years of original research Acemoglu and Robinson marshall extraordinary historical evidence from the Roman Empire, the Mayan city-states, medieval Venice, the Soviet Union, Latin America, England, Europe, the United States, and Africa to build a new theory of political economy with great relevance for the big questions of today, including: - China has built an authoritarian growth machine. Will it continue to grow at such high speed and overwhelm the West? - Are America s best days behind it? Are we moving from a virtuous circle in which efforts by elites to aggrandize power are resisted to a vicious one that enriches and empowers a small minority? - What is the most effective way to help move billions of people from the rut of poverty to prosperity? More philanthropy from the wealthy nations of the West? Or learning the hard-won lessons of Acemoglu and Robinson s breakthrough ideas on the interplay between inclusive political and economic institutions? Why Nations Fail will change the way you look at--and understand--the world. Bookseller Inventory # LIB9780307719218

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Book Description Random House USA Inc, United States, 2012. Hardback. Book Condition: New. rough cut.. 234 x 155 mm. Language: English Brand New Book. Brilliant and engagingly written, Why Nations Fail answers the question that has stumped the experts for centuries: Why are some nations rich and others poor, divided by wealth and poverty, health and sickness, food and famine? Is it culture, the weather, geography? Perhaps ignorance of what the right policies are? Simply, no. None of these factors is either definitive or destiny. Otherwise, how to explain why Botswana has become one of the fastest growing countries in the world, while other African nations, such as Zimbabwe, the Congo, and Sierra Leone, are mired in poverty and violence? Daron Acemoglu and James Robinson conclusively show that it is man-made political and economic institutions that underlie economic success (or lack of it). Korea, to take just one of their fascinating examples, is a remarkably homogeneous nation, yet the people of North Korea are among the poorest on earth while their brothers and sisters in South Korea are among the richest. The south forged a society that created incentives, rewarded innovation, and allowed everyone to participate in economic opportunities. The economic success thus spurred was sustained because the government became accountable and responsive to citizens and the great mass of people. Sadly, the people of the north have endured decades of famine, political repression, and very different economic institutions--with no end in sight. The differences between the Koreas is due to the politics that created these completely different institutional trajectories. Based on fifteen years of original research Acemoglu and Robinson marshall extraordinary historical evidence from the Roman Empire, the Mayan city-states, medieval Venice, the Soviet Union, Latin America, England, Europe, the United States, and Africa to build a new theory of political economy with great relevance for the big questions of today, including: - China has built an authoritarian growth machine. Will it continue to grow at such high speed and overwhelm the West? - Are America s best days behind it? Are we moving from a virtuous circle in which efforts by elites to aggrandize power are resisted to a vicious one that enriches and empowers a small minority? - What is the most effective way to help move billions of people from the rut of poverty to prosperity? More philanthropy from the wealthy nations of the West? Or learning the hard-won lessons of Acemoglu and Robinson s breakthrough ideas on the interplay between inclusive political and economic institutions? Why Nations Fail will change the way you look at--and understand--the world. Bookseller Inventory # LIB9780307719218

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