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RAISE FOR
Why Nations Fail
“Acemoglu  and  Robinson  have  made  an  important
contribution to the debate as to why similar-looking nations
differ  so  greatly  in  their  economic  and  political
development. Through a broad multiplicity of historical
examples,  they  show  how  institutional  developments,
sometimes based on very accidental circumstances, have
had enormous consequences. The openness of a society,
its willingness to permit creative destruction, and the rule of
law appear to be decisive for economic development.”
—Kenneth J. Arrow, Nobel laureate in economics,
1972
“The authors convincingly show that countries escape
poverty  only  when  they  have  appropriate  economic
institutions, especially private property and competition.
More originally, they argue countries are more likely to
develop the right institutions when they have an open
pluralistic political system with competition for political
office, a widespread electorate, and openness to new
political leaders. This intimate connection between political
and  economic institutions is the  heart of their major
contribution, and has resulted in a study of great vitality on
one of the crucial questions in economics and political
economy.”
—Gary S. Becker, Nobel laureate in economics,
1992
“This important and insightful book, packed with historical
examples,  makes  the  case  that  inclusive  political
institutions in support of inclusive economic institutions is
key to sustained prosperity. The book reviews how some
good regimes got launched and then had a virtuous spiral,
while bad regimes remain in a vicious spiral. This is
important analysis not to be missed.”
—Peter Diamond, Nobel laureate in economics,
2010
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“For those who think that a nation’s economic fate is
determined by geography or culture, Daron Acemoglu and
Jim Robinson have bad news. It’s manmade institutions,
not the lay of the land or the faith of our forefathers, that
determine whether a country is rich or poor. Synthesizing
brilliantly the work  of  theorists from Adam  Smith  to
Douglass North with more recent empirical research by
economic  historians,  Acemoglu  and  Robinson  have
produced a compelling and highly readable book.”
—Niall Ferguson, author of The Ascent of Money
“Acemoglu and Robinson—two of the world’s leading
experts on development—reveal why it is not geography,
disease, or culture that explain why some nations are rich
and some poor, but rather a matter of institutions and
politics. This highly accessible book provides welcome
insight to specialists and general readers alike.”
—Francis Fukuyama, author of The End of
History and the Last Man and The Origins of
Political Order
“A brilliant and uplifting book—yet also a deeply disturbing
wake-up call. Acemoglu and Robinson lay out a convincing
theory  of  almost  everything  to  do  with  economic
development. Countries rise when they put in place the right
pro-growth  political  institutions  and  they  fail—often
spectacularly—when those institutions ossify or fail to
adapt. Powerful people always and everywhere seek to
grab  complete  control  over  government,  undermining
broader social progress for their own greed. Keep those
people in check with effective democracy or watch your
nation fail.”
—Simon Johnson, coauthor of 13 Bankers and
professor at MIT Sloan
“Two of the world’s best and most erudite economists turn
to the hardest issue of all: why are some nations poor and
others rich? Written with a deep knowledge of economics
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and political history, this is perhaps the most powerful
statement  made  to  date  that  ‘institutions  matter.’  A
provocative, instructive, yet thoroughly enthralling book.”
—Joel Mokyr, Robert H. Strotz Professor of Arts
and Sciences and Professor of Economics and
History, Northwestern University
“In this delightfully readable romp through four hundred
years of history, two of the giants of contemporary social
science bring us an inspiring and important message: it is
freedom that makes the world rich. Let tyrants everywhere
tremble!”
—Ian Morris, Stanford University, author of Why
the West Rules—for Now
“Imagine sitting around a table listening to Jared Diamond,
Joseph Schumpeter, and James Madison reflect on more
than two thousand years of political and economic history.
Imagine  that  they weave their  ideas into a coherent
theoretical  framework  based  on  limiting  extraction,
promoting creative destruction, and creating strong political
institutions that share power, and you begin to see the
contribution of this brilliant and engagingly written book.”
—Scott E. Page, University of Michigan and Santa
Fe Institute
“In  this  stunningly wide-ranging  book, Acemoglu and
Robinson ask a simple but vital question, why do some
nations become rich and others remain poor? Their answer
is also simple—because some polities develop more
inclusive political institutions. What is remarkable about the
book  is the crispness and clarity  of the  writing,  the
elegance of the argument, and the remarkable richness of
historical detail. This book is a must-read at a moment
when governments across the Western world must come
up with the political will to deal with a debt crisis of unusual
proportions.”
—Steven Pincus, Bradford Durfee Professor of
History and International and Area Studies, Yale
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University
“It’s the politics, stupid! That is Acemoglu and Robinson’s
simple  yet  compelling  explanation  for  why  so  many
countries fail to develop. From the absolutism of the Stuarts
to the antebellum South, from Sierra Leone to Colombia,
this magisterial work shows how powerful elites rig the
rules to benefit themselves at the expense of the many.
Charting a careful course between the pessimists and
optimists, the authors demonstrate history and geography
need not be destiny. But they also document how sensible
economic ideas and policies often achieve little in the
absence of fundamental political change.”
—Dani Rodrik, Kennedy School of Government,
Harvard University
“This is not only a fascinating and interesting book: it is a
really important one. The highly original research that
Professors Acemoglu  and Robinson  have  done, and
continue to do, on how economic forces, politics, and policy
choices evolve together and constrain each other, and how
institutions  affect  that  evolution,  is  essential  to
understanding the successes and failures of societies and
nations. And here, in this book, these insights come in a
highly accessible, indeed riveting form. Those who pick this
book up and start reading will have trouble putting it down.”
—Michael Spence, Nobel laureate in economics,
2001
“This  fascinating and readable  book  centers  on  the
complex  joint  evolution  of  political  and  economic
institutions, in good directions and bad. It strikes a delicate
balance  between the logic of political  and economic
behavior and the shifts in direction created by contingent
historical events, large and small, at ‘critical junctures.’
Acemoglu and Robinson provide an enormous range of
historical examples to show how such shifts can tilt toward
favorable  institutions,  progressive  innovation,  and
economic success or toward repressive institutions and
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eventual decay or stagnation. Somehow they can generate
both excitement and reflection.”
—Robert Solow, Nobel laureate in economics,
1987
Copyright © 2012 by Daron Acemoglu and James A. Robinson
All rights reserved.
Published in the United States by Crown Publishers, an imprint of the
Crown Publishing Group, a division of Random House, Inc., New York.
www.crownpublishing.com
CROWN and the CROWN colophon are registered trademarks of
Random House, Inc.
Library of Congress Cataloging-in-Publication Data
Acemoglu, Daron.
Why nations fail : the origins of power, prosperity, and poverty / Daron
Acemoglu, James A. Robinson.—1st ed.
p. cm.
Includes bibliographical references.
1. Economics—Political aspects. 2. Economic history—Political
aspects. 3. Poverty—Developing countries. 4. Economic development
—Developing countries.
5. Revolutions—Economic aspects. 6. Developing countries—
Economic policy.
7. Developing countries—Social policy. I. Robinson, James A., 1960–.
II. Title.
HB74.P65A28 2012
330—dc23
2011023538
eISBN: 978-0-307-71923-2
Maps by Melissa Dell
Jacket design by David Tran
Jacket photograph by Kirk Mastin/Getty Images
v3.1
For Arda and Asu
—DA
Para María Angélica, mi vida y mi alma
—JR
CONTENTS
Cover
Title Page
Copyright
Dedication
P
REFACE
Why Egyptians filled Tahrir Square to bring down Hosni
Mubarak and what it means for our understanding of the
causes of prosperity and poverty
1
.
S
O
C
LOSE AND
Y
ET
S
O
D
IFFERENT
Nogales, Arizona, and Nogales, Sonora, have the same
people, culture, and geography. Why is one rich and one
poor?
2
.
T
HEORIES
T
HAT
D
ON’T
W
ORK
Poor countries are poor not because of their geographies
or cultures, or because their leaders do not know which
policies will enrich their citizens
3
.
T
HE
M
AKING OF
P
ROSPERITY AND
P
OVERTY
How prosperity and poverty are determined by the
incentives created by institutions, and how politics
determines what institutions a nation has
4
.
S
MALL
D
IFFERENCES AND
C
RITICAL
J
UNCTURES:
T
HE
W
EIGHT
OF
H
ISTORY
How institutions change through political conflict and how
the past shapes the present
5
.
“I
’VE
S
EEN THE
F
UTURE, AND
I
T
W
ORKS
:
G
ROWTH
U
NDER
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