Acemoglu and Robinson set out to answer the question why are some nations rich and others poor? The book begins by analyzing Nogales Arizona and Nogales Mexico. In essence this is a city with a national border that divides one portion of the city from the other. The United States side of Nogales is far more prosperous and safe than the Mexican side. The authors attempt to explain why this is the case. Another example given is North and South Korea.
The authors next go through a few theories regarding why some nations succeed and others fail and explain why each of those theories is wrong. They included the geography hypothesis, the culture hypothesis, and the ignorance hypothesis.
The authors state “to understand world inequality we have to understand why some societies are organized in a very inefficient and socially undesirable ways.” They continued “poor countries are poor because those who have power make choices that create poverty. They get it wrong not by mistake or ignorance but on purpose.”
The authors outline numerous historical examples of successful and unsuccessful nations. They argue that successful nations have inclusive political and economic institutions and that poor nations have extractive political and economic institutions. One of the ways to secure inclusive institutions is to have secure property rights. They note that communism is extractive and it’s abhorrence of private property will always lead to poverty.
Innovation is necessary for wealth generation. Inclusive institutions allow for the creative destruction necessary for innovation and countries that are extractive stifle creative destruction.
This was a well researched book with numerous examples. At times it seemed repetitive. The book jumped from time period to time period and might be in Ancient Rome on one page and 18th century Europe on the next. I found their conclusion weak but overall it was a good book.
Overall I give this book 4 stars out of 5.
Thomas Aquinas is credited as one of the greatest proponents of natural law. During his time in Cologne he was taught by Albertus Magnus. Magnus used the teachings of Aristotle in his mentorship of Thomas Aquinas.
Samuel Adams believed in American Independence from Great Britain. He is one of the most well know Son's of Liberty. On August 1, 1776 he gave a speech to the Continental Congress in Philadelphia.
The Mount of Forty Springs, Zagros Mountains, Iran Saturday 11:30 PM
By the dim light of torches seven hooded figures made their ascent up the nearly invisible path. Thirty minutes had passed since they began hiking off the established trail. A person who had never traveled this path would not have been able to find it.
These men were not making their first journey. Each had traveled this path as part of a group and individually. Even without the torches each man would find the destination without difficulty. Some things could never be forgotten.
In silence they made their final steps. Amidst the juniper and oak trees stood a single cedar tree. They had arrived at their destination. Concealed amidst the undergrowth was a small cave. Sliding a large bolder away from the back of the cave revealed a secret stairwell.
The men could not be completely at ease yet, but the most physically demanding portion of their journey was over. From this point things would be more psychologically challenging and each man would handle those struggles...
