E889 - Why Nations Fail: Insights into Economic Disparities and Institutions

Chapter 1 What's Why Nations Fail

"Why Nations Fail," authored by Daron Acemoglu and James A. Robinson, is a pivotal work that explores the role of political and economic institutions in shaping the prosperity of nations. The authors argue that inclusive institutions—those that distribute political power and economic opportunities broadly—foster innovation and economic growth, whereas extractive institutions, which concentrate power and wealth in the hands of a few, lead to economic stagnation and failure. Through historical examples and a compelling analytical framework, Acemoglu and Robinson highlight how the interplay between political structures and economic incentives ultimately determines a nati...