Why Nation Fail - Daron Acemoglu & James A. Robinson

Why Nations Fail argues that the fundamental reason behind the success or failure of nations is the nature of their institutions. Inclusive institutions lead to prosperity by providing equal opportunities for individuals, fostering innovation, and encouraging broad participation in economic activities. In contrast, extractive institutions concentrate power and wealth in the hands of a few, hindering development and leading to poverty. Acemoglu and Robinson’s work challenges traditional explanations for economic disparities, such as geography or culture, and provides a compelling argument for the importance of inclusive institutions in creating sustainable development. The book is a rigorous examination of the forces that shape the economic outcomes of nations, offering insights into how countries can foster prosperity by creating inclusive political and economic institutions.