The Origins Of Power, Prosperity, And Poverty

“Why Nations Fail” by Daron Acemoglu and James A. Robinson is an ambitious book published in 2012. The book is a scholarly work by Turkish-American economist Daron Acemoglu from the Massachusetts Institute of Technology and British political scientist James A. Robinson from the University of Chicago. The book was picked as one of the best books of the year by the Washington Post, The Financial Times, The Economists, Businessweek, Bloomberg, and the list goes on. The book also received harsh criticism from several scholars, including Bill Gates.

The central idea of the book is to explore why some countries get rich while others do not. The authors provide the answer with their theories on inclusive economic institutions and extractive economic institutions. Inclusive economic institutions that enforce property rights, encourage investments in new technologies and skills are more conducive to economic growth than extractive economic institutions. The book offers a broad range of historical evidence from different countries.

How did Venice become a museum after many years of economic expansion? Why South Korea and North Korea are geographically so close yet so different in their economies? Why was England able to take advantage of Industrial Revolution more than other countries? Was it the dual economy that made Burma’s economy stay behind? What makes the United States of America a prosperous country? How did Argentina’s government need to impose currency controls to support its economy? Why did cheap labor in South Africa and domestic division between white and black Africans lead the country into so much international debt? Will China practice the inclusive economic system after many years of communism?

I believe leaders will continue to read, question, debate, and discuss this book for many decades to come. Fifteen years of research by Daron and James embedded readers with insurmountable intellectual debt. “Why Nations Fail” definitely is a big book in many ways.

https://www.amazon.com/Why-Nations-Fail-Origins-Prosperity-ebook/dp/B0058Z4NR8