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

PustakBaaz

Updated: Jul 16, 2022


For those who think that a nation's economic fate is determined by geography or culture, Daron Acemoglu and Jim Robinson have bad news.


It's man-made institutions, not the lay of the land or the faith of our forefathers, that determine whether a country is rich or poor.


Synthesizing brilliantly the work of theorists from Adam Smith to Douglass North with more recent empirical research by economic historians, Acemoglu and Robinson have produced a compelling and highly readable book.

And their conclusion is a cheering one: the authoritarian "extractive" institutions like the one's 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


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