WHY NATIONS FAIL: THE ORIGINS OF POWER, PROSPERITY AND POVERTY

The greatest work ever done to understand why nations fail, genuinely mind boggling. I have never seen such a brilliant dissection of the patterns of propserity and destitution.

While I rated this book 4/5 star because of its engaging content and somewhat world perspective that how nation's institutions were responsible for their failure but the flip side of the coin shows imperialism acts as a catalysis and equally responsible for their downfall. The glorious revolution of Britan and simultaneously falling of Asian & African countries had a deep root in racism and selfishness of imperialism .

A good reading for practical economics enthusiasts

The book distinguishes between poor countries and rich countries, and explains to the readers why poor countries have remained poor and rich countries have become rich. In the first sentence of the Preface, the authors states that the book is about the huge differences in incomes and standards of living that separate the rich countries of the world, such as the United States, Great Britain and Germany, from the poor, such as those in sub-Saharan Africa, Central America and South Asia. The authors say that inclusive economic institutions allow and encourage participation by the great mass of people in economic activities that make best use of their talents and skills and that enable individuals to make the choices they wish. To be inclusive, economic institutions must feature secure private property, an unbiased system of law, and a provision of public services that provides a level playing field in which people can exchange and contract, and it also must permit the entry of new businesses and allow people to choose their careers.Inclusive economic institutions pave the way for two engines of prosperity – technology and education. Sustained economic growth is almost always accompanied by technological improvements that enable poor(labor), land, and existing capital (buildings, existing machines, and so on) to become more productive.Education, skills, competencies, and know-how of the workforce are intimately linked to technology. Education and skills of the workforce that generate the scientific knowledge upon which our progress is built and that enable the adaptation and adoption of these technologies in diverse lines of business.The authors mention that the low education level of poor countries is caused by economic institutions that fail to create incentives for parents to educate their children and by political institutions that fail to induce the government to build, finance and support schools and the wishes of parents and children. The price the poor nations pay for low education of their population and lack of inclusive markets is high, and they fail to mobilize their nascent talent. The ability of economic institutions to harness the potential of inclusive markets, encourage technological innovation, invest in people, and mobilize the talents and skills of a large number of individuals is critical for economic growth. The authors argue that the benefits of the industrial revolution and technologies didn't spread to poor countries as the elites in those countries were disinterested in achieving prosperity for ordinary people. They say that countries such as Great Britain and the United States became rich because they created a society where political rights are more broadly distributed, government is accountable and responsive to citizens, and a great mass of people take advantage of economic opportunities i.e., inclusive growth. By mere revolution, a poor country doesn't become rich. To become rich, there should be political transformation with a commitment and action plan to bring prosperity to its ordinary people through accountability, responsiveness, promoting industries, using technologies, technical know-how and from inclusive growth by creating economic opportunities for a great mass of people.Overall, the book is recommended for all who are interested in knowing reasons for poor progress and economic growth in poor countries and also for those who want to make their countries rich.

One of the best book of economic development i have ever read

The book is a collection of many real-life economic and political decisions which led different outcomes throughout the world.Writers have discussed cause and effect of Industrial Revolution, on Britain and subsequently on Europe and other parts of the world by using the politico-economic tools like Imperialism and Colonialism.Writers have proposed a thesis focusing on examples related to Democracy, Socialism and Modernization processes in a cyclical manner to substantiate rise and fall of societies, polities, nations and sometimes civilizations.Sometimes the book becomes tough to read because of totally new names and countries with there leaders.Writers have simply established that old systems are bound to become exploitative and narrow. They have further suggested that to survive and grow, new economic and political systems should be adopted. They have also suggested that Democracy and Modernization are inter-connected as well as by-products of each other.

Incredible narrative finding a common thread in the politics, economics & histories of societies and nations, across timelines stretching to centuries, and geographies spreading the whole world! Truly monumental!

This is a brilliant book which explains, with relevant examples, as to why some nations or societies languish, while others make tremendous progress politically and economically.In my sincere views, (an abridged version of) this book should be made part of curriculum at schools starting Standard IX. It will help young minds to grasp the building blocks of shaping up a nation of their dreams.