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 15 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:
Why Nations Fail will change the way you look at—and understand—the world.
©2012 Daron Acemoglu (P)2012 Random House
"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, co-author 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 Prize–winning author of the best sellers 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)
Although the book is built on two pivotal concepts the construct is intelligent and substantiated.
This visionary approach to understanding society is a must listen for all of humanity.
It calls people across the world to take up their own reign of power and be represented in their society as no other can do for them.
Why Nations Fail is sure to become the basis of a new understanding of the effects of government and the governed upon each other.
This book reset my perspective of world history and the dynamics of societal success and failure.
Full of interesting facts and historical anecdotes, but it struggles to piece those together into an extremely compelling or convincing framework. Somewhat vague as to the definitions of its own key ideas. For all that, an enjoyable look at the economic and political history of nations.
was OK, cool premise but got old and repetitive. would have liked more nuance and discussion
Interesting theory's. No one can disagree that extractive institutions are extremely harmful.
However the book is full of availability biases (authors should read Daniel Kahneman and Nassim Taleb's books).
Authors were also proved completely wrong about Brazil's Lula trajectory. His government were an extreme version of extractive institutions under a skin of pluralistic marketing.
The most important contribution the authors could have made was not covered: how to identify (at present) which are and are not extractive institutions. Of course, there is no definitive answer.
"History made science"
Breathtaking sweep across time and geography, flying along on the coat-tails of a theory that is so intuitively acceptable that it almost makes you say 'duh'. A society's institutions, extractive (bad) or inclusive (good) explain the wealth of the society and the health and happiness of the common man (and, if you are really lucky, woman). I hated history at school because it didn't explain: just one damn thing after another. This does, right up to the end where they use their theory to predict the future success of current societies. It explains why 'state building' (e.g. in Afgahanistan) is such a challenge. The UK (a pioneer in modern state building) got properly started on the process in 1215, brought in universal education in about 1890 and gave women the vote in 1928. Mind expanding book.
"Brillianr explanation of the World we see today!"
Why Nations Fail is one of the most thought provoking books I've ever listened to.
This book explains in detail the reasons why we see the world as it is today. British, and in particular English creativity and entrepreneurism are at the heart of the story and describes how the actions of those people who wrestled power away from English elite society in the 17th century changed the face of the world for ever.
Well worth a read if you want to know why the USA succeeded to become the most powerful country in the world and didn't end up as just another failed state.
the authors repeat the same argument over and over, stretching vast amounts of historical examples to fit it's frame.
The reflexion is weak and unconvincing, thus the authors resort to an aggressive and patronizing rhetoric to dismiss other theories regarding the disparity between nations. They seem particularly threatened by Jared Diamonds Gun, Germ and Steal, and rightly so.
Although they would have us believe that we are responsible for our own misery or prosperity because of the institutions we live by, they then admit that there is no reason for one set of institutions to appear in one place rather than another, their explanation being a parallel between their theory and evolution, small institutional differences brought forward by crisis.
there is no proper causal description, at best a messy pile of historical examples correlated with economic development. Whatever argument worth mentioning could have been said in a few paragraphs
the fact that the authors are so pleased with themselves render the all experience rather unbearable.
"Interesting only as a history book"
Interesting only as a history book. The assumptions of the writers are in most cases based on an one sided interpretation of historical events and they are missing some very obvious points.
"Repetitive, but interesting."
As has been said - repetitively - by other reviewers, this is a very repetitive book. And not just thematically. If you removed the words "inclusive", "extractive", "institutions", "glorious revolution of 1688" and ”creative destruction" the book would be about 9 hours shorter. It's still quite interesting (especially when they zoom in on specific histories, like with Botswana, Uzbekistan and Brazil, about which I knew nothing) and I kept going to the end, but the Grand Theory being espoused doesn't seem all that remarkable, unfortunately. (It can be summarised as: If your public institutions are strong enough to stop the gangsters from getting in charge, you're probably going to be okay, if not, you're screwed.) So, not bad, but not brilliant either. (Did I mention it's repetitive?")
"Great companion to Diamond's work"
This is a fantastic contrast to Jared Diamond's work on the origins of poverty. This should be required reading for anyone interested in the real sources of inequality. There is a slight danger in the book where anything that happens which is not consistent with the overall thesis becomes a 'contingency' of history. That said, the arguments are convincing and beautifully told.
"Repetitive and unconvincing even if true"
Shorter and succinct.
Ardennes 1944 by Anthony Beevor
no change as it wouldn't improve things
Not that kind of book
"Repetitive, but interesting."
Annoyingly repetitive, but I'd still consider it a good read. The book discusses the factors that influence economic growth and compares a large amount of historical events and developments to understand and undermine its main hypothesis: inclusive institutions are key.
"Theory meh, history top notch."
While the idea that any other system than America's is doomed to failure is oddly presented rather than argued, the tour of world history is detailed and varied and very well presented.
"A book everyone should read/listen to"
The complexities of how politics, economics , history and sociology affect the forming and falling of every nation on earth is explained in a way that is both easy to understand and engaging.
Anyone who ever felt frustrated about the state of the world or baffle by politics should read this book which proves when it comes to nations it's not what you have but what you do that counts.
Truly a masterpiece
learning that having too many natural resources (the curse of oil holds back most of middle east from innovation) can be damaging to a nation state
the clear explanations were not patronising but informing
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