Why Nations Fail

Is it culture, the weather, geography, or race that explains why some nations are rich and others poor? In Why Nations Fail, economists Daron Acemoglu and James Robinson answer with a simple but powerful theory: the difference between countries is their institutions — the rules that determine how the economy works, and the incentives that motivate people. Drawing on fifteen years of research and a broad sweep of history, they show that ‘inclusive’ economic institutions that enforce property rights, create a level playing field, and encourage investment in new technologies and skills are far more conducive to economic growth than ‘extractive’ economic institutions that impoverish rather than enrich the population.