Why Nations Fail

Outline

Why Nations Fail (2012) asks why some countries become rich while others remain poor. Daron Acemoglu and James A. Robinson argue that the answer lies not in geography or culture, but in institutions. Using examples from across history, they show that inclusive political and economic institutions encourage innovation and prosperity, while extractive institutions that serve a small elite hold nations back.

• Some countries become rich while others stay poor, and the book looks for the cause behind that gap.
• The authors argue that geography and culture are not the answer; institutions are.
• Inclusive political and economic institutions encourage innovation and prosperity.
• Extractive institutions serve a small elite and hold a nation back.
• The authors draw examples from across history to show how institutions shape a nation's fate.

Daron Acemoglu and James A. Robinson are two of the world’s leading economists and longtime collaborators. Acemoglu is a Turkish-American economist at MIT, and Robinson is a British economist and political scientist at the University of Chicago. In 2024 they shared the Nobel Memorial Prize in Economic Sciences for their research on how institutions shape prosperity.