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Why Nations Fail: Geographical, Cultural, and Institutional Dynamics

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  • Antoon Spithoven

Abstract

The 2024 Nobel Laureates Daron Acemoglu and James A. Robinson argue that differences in wealth between countries can be explained exclusively by differences in institutions, defined as the rules of the game. To substantiate their claim that wealth differences can be explained neither by geography nor culture, Acemoglu and Robinson point to the different economic development in, among others, Nogales, Sonora and Nogales, Arizona.Acemoglu and Robinson’s approach contrasts with that of the original institutional economists, who define institutions as collective action that controls individual action. From the perspective of the Original Institutional Economics approach, I examine the diverging wealth development in Ambos Nogales. My literature study reveals that factors of growth are pluralistic, multi-faceted, and continuously emerging. Wealth differences can be attributed to evolving, mutually interacting (social) geography, culture, and institutions.

Suggested Citation

  • Antoon Spithoven, 2026. "Why Nations Fail: Geographical, Cultural, and Institutional Dynamics," Journal of Economic Issues, Taylor & Francis Journals, vol. 60(2), pages 556-564, April.
    • Handle: RePEc:mes:jeciss:v:60:y:2026:i:2:p:556-564
    DOI: 10.1080/00213624.2026.2657235
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