E14 — Turning Points to Inclusive Institutions

In this episode of Why Nations Fail — A Deep Dive into Acemoglu & Robinson’s Theory, we explore remarkable moments in history when nations broke free—at least partially—from the grip of extractive institutions. We examine three compelling case studies:

Botswana, where pre-colonial pluralistic traditions laid the groundwork for a stable and inclusive post-independence democracy;

The U.S. South, where the Civil Rights Movement and federal reforms dismantled centuries of institutionalized racial exclusion;

China, where Deng Xiaoping’s post-Mao economic reforms sparked unprecedented growth by introducing inclusive economic policies, even as the political system remained tightly controlled.

These examples highlight how institutional change is possible—and sometimes surprisingly effective—when historical circumstances align with bold leadership and public pressure.