Why Nations Fail - Daron Acemoglu & James A. Robinson

Join us for a discussion of Why Nations Fail: The Origins of Power, Prosperity, and Poverty by Daron Acemoglu and James A. Robinson.
The synopsis and some tentative discussion questions are below. If as you read, you encounter some thought-provoking lines and/or find yourself wrestling with some burning questions, please note them down and bring them to the discussion!
Whether you’ve read the whole book or just want to explore some of its central ideas, you’re welcome to join; and if you need help accessing the text, please feel free to reach out to me directly.

Synopsis:
Why Nations Fail argues that the key to understanding global differences in wealth and freedom lies in political and economic institutions. The authors distinguish between “inclusive” institutions, which protect property rights, encourage broad participation, and create incentives for innovation, and “extractive” institutions, which concentrate power and wealth in the hands of a narrow elite and allow that elite to prey on the rest of society.
Through historical case studies ranging from colonial Latin America and the Industrial Revolution to contemporary examples such as North and South Korea, they argue that inclusive institutions tend to produce sustained prosperity, while extractive institutions lead to stagnation, instability, and eventual crisis. Geography, culture, and policy “mistakes” matter less, in their view, than struggles over political power and the path-dependent dynamics of institutional change.

Discussion Questions (subject to revision):

1. The book claims that institutions—not geography or culture—are the primary drivers of national success or failure. How persuasive do you find this emphasis on institutions?
2. “Inclusive” and “extractive” are powerful but broad categories. Do they help clarify the world, or do they risk oversimplifying complex political and economic arrangements?
3. Many of the examples in the book involve colonial histories and sharp institutional breaks (e.g., North vs. South Korea). How well does the framework handle more gradual or ambiguous cases?
4. The authors argue that elites often block reform when it threatens their power, even if it would increase overall wealth. Can you think of contemporary examples that fit—or challenge—this pattern?
5. How does Why Nations Fail compare, in your mind, to other explanations of development and inequality (geography, culture, resource curses, world-systems, etc.)? Does it complement them or compete with them?
6. Some critics argue that the book underestimates the role of international systems, corporations, or global finance. Does the focus on national institutions obscure transnational power structures?
7. If inclusive institutions are the key to prosperity, what does that suggest about priorities for reform in wealthy democracies facing rising inequality?
8. After engaging with their argument, do you feel more optimistic or pessimistic about the prospects for institutional change in countries that are currently “failing”?

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