Why Nations Fail

Daron Acemoglu and James A. Robinsons Why Nations Fail

“NATIONS FAIL TODAY because their extractive economic institutions do not create the incentives needed for people to save, invest, and innovate. Extractive political institutions support these economic institutions by cementing the power of those who benefit from the extraction.”

After reading The Bottom Billion; Guns, Germs, and Steel; Civilization; and Why Nations Fail, I am now accepting any and all dinner party invitations to talk endlessly on economic development and why some nations have prospered while others lag behind. I will be so interesting! I promise…

Anyway, Why Nations Fail is my top pick from the list of books above. It has a very narrow focus on the problem that faces successful nations versus unsuccessful nations. The difference, argues the authors, is that unsuccessful nations have extractive institutions. The points are well argued and interesting and even make points that argue some of the other books I have read thus far. The historical tidbits kept me engaged and the book helped me to better understand the divide that exists between even geographically close nations. If you are interested in international economic development, I would definitely recommend this read.