WHY NATIONS FAIL: THE ORIGINS OF POWER, PROSPERITY AND POVERTY

Acemoglu and Robinson provide a compelling argument for why institutions are the primary drivers of economic success. The historical examples are fascinating and well researched. It is an essential read for anyone interested in global economics and politics.

Over the last few decades, in developmental discourse, the main themes have been associated with geography, culture, and ignorance hypothesis(as Acemoglu and Robinson have pointed out). While the authors give a fresh perspective through their new institutional theory, there are some contentions that they fail to address. The book is undoubtedly well researched and chiseled. Highly recommended.

The book distinguishes between poor countries and rich countries, and explains to the readers why poor countries have remained poor and rich countries have become rich. In the first sentence of the Preface, the authors states that the book is about the huge differences in incomes and standards of living that separate the rich countries of the world, such as the United States, Great Britain and Germany, from the poor, such as those in sub-Saharan Africa, Central America and South Asia. The authors say that inclusive economic institutions allow and encourage participation by the great mass of people in economic activities that make best use of their talents and skills and that enable individuals to make the choices they wish. To be inclusive, economic institutions must feature secure private property, an unbiased system of law, and a provision of public services that provides a level playing field in which people can exchange and contract, and it also must permit the entry of new businesses and allow people to choose their careers. Inclusive economic institutions pave the way for two engines of prosperity – technology and education. Sustained economic growth is almost always accompanied by technological improvements that enable poor(labor), land, and existing capital (buildings, existing machines, and so on) to become more productive. Education, skills, competencies, and know-how of the workforce are intimately linked to technology. Education and skills of the workforce that generate the scientific knowledge upon which our progress is built and that enable the adaptation and adoption of these technologies in diverse lines of business. The authors mention that the low education level of poor countries is caused by economic institutions that fail to create incentives for parents to educate their children and by political institutions that fail to induce the government to build, finance and support schools and the wishes of parents and children. The price the poor nations pay for low education of their population and lack of inclusive markets is high, and they fail to mobilize their nascent talent. The ability of economic institutions to harness the potential of inclusive markets, encourage technological innovation, invest in people, and mobilize the talents and skills of a large number of individuals is critical for economic growth. The authors argue that the benefits of the industrial revolution and technologies didn't spread to poor countries as the elites in those countries were disinterested in achieving prosperity for ordinary people. They say that countries such as Great Britain and the United States became rich because they created a society where political rights are more broadly distributed, government is accountable and responsive to citizens, and a great mass of people take advantage of economic opportunities i.e., inclusive growth. By mere revolution, a poor country doesn't become rich. To become rich, there should be political transformation with a commitment and action plan to bring prosperity to its ordinary people through accountability, responsiveness, promoting industries, using technologies, technical know-how and from inclusive growth by creating economic opportunities for a great mass of people. Overall, the book is recommended for all who are interested in knowing reasons for poor progress and economic growth in poor countries and also for those who want to make their countries rich.

Got addicted to this book. This book contains numerous historical anecdotes of how various points in history have influenced the contemporary affairs and how those tiny changes stacked up over time that resulted in a system that is either inclusive or extractive. Half way in and I already got a good understanding of how various societies have evolved and what they thought us about what works and what doesn't.

Wonderful explanations - for example Magna Carta or slave trade or development in Northern and Southern parts of the USA and the two political parties.

While I rated this book 4/5 star because of its engaging content and somewhat world perspective that how nation's institutions were responsible for their failure but the flip side of the coin shows imperialism acts as a catalysis and equally responsible for their downfall. The glorious revolution of Britan and simultaneously falling of Asian & African countries had a deep root in racism and selfishness of imperialism .

Should read if you are interested to make a broad view of how institutions of nations effect theirs policies and overall development.

"Why Nations Fail" provides a modern and comprehensive account of political economy as we know it. A must-read for political economy enthusiasts as well as any citizen who wants to understand how their nation engages in the intricate business of shaping the political and economic landscape, not only within national boundaries but across the world.

Avevo sentito parlare in maniera estasiata di Acemoglu da due amici studenti di economia, ma non avevo mai avuto modo di "viverlo" in prima persona. "Why Nations Fail" non è solo un saggio economico, ma un vero e proprio viaggio che, al suo termine, ti fa sentire accresciuto intellettualmente e nella visione del mondo. Acemoglu è stato in grado di far coinciliare in maniera eccellente varie materie: dall'economia alla geografia; dalla storia alla sociologia. Libro che reputo dovrebbe essere fatto leggere in uno degli ultimi due anni di superiori, e che consiglio tantissimo ai miei colleghi di giurisprudenza appassionati di diritto comparato; diritto internazionale ed economia politica. A tratti forse leggermente ripetitivo, ma comunque un "must".

El libro es fabuloso y queria tenerlo en papel, pero lo he recibod en malas condiciones. Tiene sentido enviar un libro mal impreso y dañado siendo nuevo? Lo cambiaré pero no es razonable hacer el control de calidad de Amazon.

Good

I have read recreationally nothing but non-fiction for around thirty years and this is one of the most enjoyable books I ever read. I was happy to note that Harvard Professor Niall Fergusson practically recast this book as part of his first Reith lecture this year and the World Service had the author on Hard Talk. Take note all the negative reviewers out there! Dare I say, shame on you... The author has incredible breadth and dots around history and location to illustrate points. I really liked this because, although the author is developing several core ideas, all the potted histories are absolutely fascinating in their own right. I met a Philipino today and was able to say, "I was reading a bit about your history recently". This was only a small part of the book but my recall was proven to be spot-on and this was purely because the author writes with such clarity. Whereas I have really enjoyed all the histories of places that I'd forgotten existed (e.g. Venice, Mogadishu), reading about the more obvious subject areas was also a joy. For example, I have read three books on the history of France, and in spite of this I thoroughly enjoyed revisiting the topic. The book hit all salient points so well and coined a wonderful summary. To summarise: - The ideas are superb. - The clarity with which tricky ideas are covered is top rate. - Forgetting the above two points, every history that the author calls upon are in themselves fascinating and enjoyable to read. PS: To labour a side issue, if this book has taught me one thing, it is to not trust self reporting reviews, especially those of the type that condescendingly treated this book as though they were an academic professors doing-down an undergraduates best efforts. They even misquote so as to validate their negative reviews (this book does NOT misunderstand about the Armada). I hate the idea of somebody missing out on the chance to enjoy this book and I am guessing that Niall Fergusson, to his credit, was not one of them.

I found the amount of information presented overwhelming at times. Could only read an hour at a time trying to absorb the content. Loved the concepts presented and the myriad of historical examples to back up the thesis of the book. I would have found clear subheadings in each chapter helpful to remain on track.