Why Nations Fail

This is a bestselling book that tackles the most important question in economics: why some countries are rich, and some are poor.

This well-written and convincing book provides a very broad and accessible overview of history of successful and failing societies. It argues that inclusive democratic institutions deliver better economic outcomes than authoritarian ones.

Given that this view is based on recent research in political economy and development economics – including the authors’ own groundbreaking work – this is a must-read for all advocates of liberal democracy who want to have quantitative arguments and historical narratives to stand up to… show more.

This book tells why say, Australia succeeds when Argentina seems to lunge from crisis to crisis, despite having a similar endowment of agricultural land, minerals, and migrants.

The answer is institutions – economic (property rights) and political (democratic rights). Why Nations Fail is a lucid, majestic account of recent world economic history for the general reader. 

What makes nations successful while others fail? I'm not a fan of environmental arguments (most famously found in Jared Diamond's Guns, Germs, and Steel). Instead, Acemoglu and Robinson discuss how political and economic institutions handle innovations. They support their argument with historical case studies – including the Classic Maya and their famous collapse. While I disagree with some specific aspects, I find their argument thought-provoking.