Why Nations Fail

The success of nations is no accident; it is the product of institutions, incentives, and choices. The origins of power, prosperity and poverty.

In Why Nations Fail, economists Daron Acemoglu and James A. Robinson tackle one of the most pressing questions in social science: why do some countries thrive while others stagnate or collapse? Drawing on centuries of history, case studies from around the globe, and rigorous economic analysis, the authors argue that political and economic institutions whether inclusive or extractive determine the prosperity or failure of nations. Wealth and poverty, they show, are rarely the result of geography, culture, or ignorance, but of the rules societies create for themselves.

The book explores how inclusive institutions foster innovation, investment, and opportunity, while extractive institutions concentrate power and wealth in the hands of a few, perpetuating poverty and stagnation. Through historical examples ranging from the Industrial Revolution to contemporary Africa and Latin America, Acemoglu and Robinson demonstrate that institutional design shapes economic trajectories, societal stability, and human potential.

Insightful, authoritative, and deeply engaging, Why Nations Fail challenges readers to rethink conventional explanations for global inequality. It is essential reading for anyone seeking to understand the underlying forces that shape societies, economies, and the future of nations.

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