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The Book By Daron Acemoglu And James A. Robinson Why Nations Fail

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The book by Daron Acemoglu and James A. Robinson Why Nations Fail: The Origins of Power, Prosperity, and Poverty discusses theories that explain the differences in standards of living and incomes among rich countries, such as the United States and the United Kingdom, and poorer countries in regions of South Asia and Central America. The basic theme of the book is that nations fail because of political institutions, rather than geography, culture, or economic policies. Acemoglu and Robinson theorize that political institutions can be divided into two types: extractive institutions where small groups of people take advantage of the population, and inclusive institutions when large groups of people are included in decisions made by the …show more content…

Although extractive institutions can experience growth, the growth cannot be continuous without what the authors call creative destruction.
Inside is a great contrast between nations, whether by the United States and Mexico, North and South Korea, or the comparison between Bill Gates and Carlos Slim. By doing this, the book keeps the reader engaged by jumping back and forth and showing the significant differences between the countries, or people, being compared. The points are explained well through the history with the rise and fall of the Romans to the rise of China out of nowhere. The focus on the changes is one of the strengths shown in Why Nations Fail. The book goes into detail about how one simple detail can trigger massive changes, such as in the 14th century during the Bubonic Plague. By discussing these differences, it is easy to show how fragile infrastructures of nations are and how little it takes to shift them.
Another big thing that Acemoglu and Robinson discuss is how countries shift from one institution to another. These switches often occur during a revolution. One of the biggest determinants is whether the revolution is narrow based or broad based. The French Revolution of 1789 is a good example of broad based revolution. Why Nations Fail argues that the development of the Napoleonic regime is because of the original broad-based nature of the French revolution. It is hard to make this claim, however, due to the almost century that passed

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