Why Nations Fail

An award-winning professor of economics at MIT and a Harvard University political scientist and economist evaluate the reasons that some nations are poor while others succeed, outlining provocative perspectives that support theories about the importance of institutions.

"Why is it so difficult to develop and sustain liberal democracy? The best recent work on this subject comes from a remarkable pair of scholars, Daron Acemoglu and James A. Robinson. In their latest book, The Narrow Corridor, they have answered this question with great insight." -Fareed Zakaria, The Washington Post From the authors of the international bestseller Why Nations Fail, a crucial new big-picture framework that answers the question of how liberty flourishes in some states but falls to authoritarianism or anarchy in others--and explains how it can continue to thrive despite new threats. In Why Nations Fail, Daron Acemoglu and James A. Robinson argued that countries rise and fall based not on culture, geography, or chance, but on the power of their institutions. In their new book, they build a new theory about liberty and how to achieve it, drawing a wealth of evidence from both current affairs and disparate threads of world history. Liberty is hardly the "natural" order of things. In most places and at most times, the strong have dominated the weak and human freedom has been quashed by force or by customs and norms. Either states have been too weak to protect individuals from these threats, or states have been too strong for people to protect themselves from despotism. Liberty emerges only when a delicate and precarious balance is struck between state and society. There is a Western myth that political liberty is a durable construct, arrived at by a process of "enlightenment." This static view is a fantasy, the authors argue. In reality, the corridor to liberty is narrow and stays open only via a fundamental and incessant struggle between state and society: The authors look to the American Civil Rights Movement, Europe’s early and recent history, the Zapotec civilization circa 500 BCE, and Lagos’s efforts to uproot corruption and institute government accountability to illustrate what it takes to get and stay in the corridor. But they also examine Chinese imperial history, colonialism in the Pacific, India’s caste system, Saudi Arabia’s suffocating cage of norms, and the “Paper Leviathan” of many Latin American and African nations to show how countries can drift away from it, and explain the feedback loops that make liberty harder to achieve. Today we are in the midst of a time of wrenching destabilization. We need liberty more than ever, and yet the corridor to liberty is becoming narrower and more treacherous. The danger on the horizon is not "just" the loss of our political freedom, however grim that is in itself; it is also the disintegration of the prosperity and safety that critically depend on liberty. The opposite of the corridor of liberty is the road to ruin.

This text illuminates the processes that cause prosperity and political order to develop together. It offers powerful insights into the divergent paths countries have taken and is a major contribution in the fields of political economy and development economics.

An award-winning professor of economics at MIT and a Harvard University political scientist and economist evaluate the reasons that some nations are poor while others succeed, outlining provocative perspectives that support theories about the importance of institutions. Reprint.

The question of development is a major topic in courses across the social sciences and history, particularly those focused on Latin America. Many scholars and instructors have tried to pinpoint, explain, and define the problem of underdevelopment in the region. With new ideas have come new strategies that by and large have failed to explain or reduce income disparity and relieve poverty in the region. Why Latin American Nations Fail brings together leading Latin Americanists from several disciplines to address the topic of how and why contemporary development strategies have failed to curb rampant poverty and underdevelopment throughout the region. Given the dramatic political turns in contemporary Latin America, this book offers a much-needed explanation and analysis of the factors that are key to making sense of development today.

Offers a look at the causes and effects of poverty and inequality, as well as the possible solutions. This title features research, human stories, statistics, and compelling arguments. It discusses about the world we live in and how we can make it a better place.

In spite of its key role in creating the ruinous financial crisis of 2008, the American banking industry has grown bigger, more profitable, and more resistant to regulation than ever. Anchored by six megabanks whose assets amount to more than 60 percent of the country’s gross domestic product, this oligarchy proved it could first hold the global economy hostage and then use its political muscle to fight off meaningful reform. 13 Bankers brilliantly charts the rise to power of the financial sector and forcefully argues that we must break up the big banks if we want to avoid future financial catastrophes. Updated, with additional analysis of the government’s recent attempt to reform the banking industry, this is a timely and expert account of our troubled political economy.

Economics is a science that can contribute substantial powerful and fresh insights! This book collects essays by leading academics that evaluate the scholarly importance of contemporary economic ideas and concepts, thus providing valuable knowledge about the present state of economics and its progress. This compilation of short essays helps readers interested in economics to identify 21st century economic ideas that should be read and remembered. The authors state their personal opinion on what matters most in contemporary economics and reveal its fascinating and creative sides.

This book systematically explains why some countries are democracies while others are not.

Why does the West rule? In this magnum opus, eminent Stanford polymath Ian Morris answers this provocative question, drawing on 50,000 years of history, archeology, and the methods of social science, to make sense of when, how, and why the paths of development differed in the East and West — and what this portends for the 21st century. There are two broad schools of thought on why the West rules. Proponents of "Long-Term Lock-In" theories such as Jared Diamond suggest that from time immemorial, some critical factor — geography, climate, or culture perhaps — made East and West unalterably different, and determined that the industrial revolution would happen in the West and push it further ahead of the East. But the East led the West between 500 and 1600, so this development can't have been inevitable; and so proponents of "Short-Term Accident" theories argue that Western rule was a temporary aberration that is now coming to an end, with Japan, China, and India resuming their rightful places on the world stage. However, as the West led for 9,000 of the previous 10,000 years, it wasn't just a temporary aberration. So, if we want to know why the West rules, we need a whole new theory. Ian Morris, boldly entering the turf of Jared Diamond and Niall Ferguson, provides the broader approach that is necessary, combining the textual historian's focus on context, the anthropological archaeologist's awareness of the deep past, and the social scientist's comparative methods to make sense of the past, present, and future — in a way no one has ever done before.

NEW YORK TIMES BESTSELLER “A provocative read...There are few tomes that coherently map such broad economic histories as well as Mr. Dalio’s. Perhaps more unusually, Mr. Dalio has managed to identify metrics from that history that can be applied to understand today.” —Andrew Ross Sorkin, The New York Times From legendary investor Ray Dalio, author of the #1 New York Times bestseller Principles, who has spent half a century studying global economies and markets, Principles for Dealing with the Changing World Order examines history’s most turbulent economic and political periods to reveal why the times ahead will likely be radically different from those we’ve experienced in our lifetimes—and to offer practical advice on how to navigate them well. A few years ago, Ray Dalio noticed a confluence of political and economic conditions he hadn’t encountered before. They included huge debts and zero or near-zero interest rates that led to massive printing of money in the world’s three major reserve currencies; big political and social conflicts within countries, especially the US, due to the largest wealth, political, and values disparities in more than 100 years; and the rising of a world power (China) to challenge the existing world power (US) and the existing world order. The last time that this confluence occurred was between 1930 and 1945. This realization sent Dalio on a search for the repeating patterns and cause/effect relationships underlying all major changes in wealth and power over the last 500 years. In this remarkable and timely addition to his Principles series, Dalio brings readers along for his study of the major empires—including the Dutch, the British, and the American—putting into perspective the “Big Cycle” that has driven the successes and failures of all the world’s major countries throughout history. He reveals the timeless and universal forces behind these shifts and uses them to look into the future, offering practical principles for positioning oneself for what’s ahead.

Nations are not trapped by their pasts, but events that happened hundreds or even thousands of years ago continue to exert huge influence on present-day politics. If we are to understand the politics that we now take for granted, we need to understand its origins. Francis Fukuyama examines the paths that different societies have taken to reach their current forms of political order. This book starts with the very beginning of mankind and comes right up to the eve of the French and American revolutions, spanning such diverse disciplines as economics, anthropology and geography. The Origins of Political Order is a magisterial study on the emergence of mankind as a political animal, by one of the most eminent political thinkers writing today.