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Why Nations Fail - Daron Acemoglu and James Robinson

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 							Is it culture, the weather, geography? Perhaps ignorance of what the right policies are? 
  
  Simply,
no. None of these factors is either definitive or destiny. Otherwise, how to explain why Botswana has become one of the
fastest growing countries in the world, while other African nations, such as Zimbabwe, the Congo, and Sierra Leone, are
mired in poverty and violence? 
  
  Daron Acemoglu and James Robinson conclusively show that it is man-made
political and economic institutions that underlie economic success (or lack of it). Korea, to take just one of their
fascinating examples, is a remarkably homogeneous nation, yet the people of North Korea are among the poorest on earth
while their brothers and sisters in South Korea are among the richest. The south forged a society that created
incentives, rewarded innovation, and allowed everyone to participate in economic opportunities. The economic success
thus spurred was sustained because the government became accountable and responsive to citizens and the great mass of
people. Sadly, the people of the north have endured decades of famine, political repression, and very different economic
institutions—with no end in sight. The differences between the Koreas is due to the politics that created these
completely different institutional trajectories. 
  
  Based on fifteen years of original research Acemoglu
and Robinson marshall extraordinary historical evidence from the Roman Empire, the Mayan city-states, medieval Venice,
the Soviet Union, Latin America, England, Europe, the United States, and Africa to build a new theory of political
economy with great relevance for the big questions of today, including: 
  
   - China has built an
authoritarian growth machine. Will it continue to grow at such high speed and overwhelm the West? 
   - Are
America’s best days behind it? Are we moving from a virtuous circle in which efforts by elites to aggrandize
power are resisted to a vicious one that enriches and empowers a small minority? 
   - What is the most effective
way to help move billions of people from the rut of poverty to prosperity? More 
  philanthropy from the wealthy
nations of the West? Or learning the hard-won lessons of Acemoglu and Robinson’s breakthrough ideas on the
interplay between inclusive political and economic institutions?  						

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