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Book Review - "Why Nations Fail" by Daron Acemoglu and James A. Robinson

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  • Raif Can
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Abstract

Daron Acemoglu and James A. Robinson attempt to explain why significant income disparity exists in today’s world among nations in their recent book called Why Nations Fail. Acemoglu and Robinson’s main argument is that political and economic institutions are the fundamental cause of the income inequality in today’s world. They make a distinction between inclusive and extractive institutions in terms of their impact on a nation’s development. While inclusive political and economic institutions spur economic prosperity, extractive ones explain why some nations are poor. This book intensely discusses how institutions play a significant role for a nation’s development. Application of their institutional analysis at the global and regional levels would give further insights in terms of the impacts of institutions on development.

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Bibliographic Info

Article provided by Research and Monetary Policy Department, Central Bank of the Republic of Turkey in its journal Central Bank Review.

Volume (Year): 13 (2013)
Issue (Month): 1 ()
Pages: 83-88

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Handle: RePEc:tcb:cebare:v:13:y:2013:i:1:p:83-88

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Keywords: Why Nations Fail; Economic Development; Institutions; Inequality; Book Review;

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