Plot summary, “Why Nations Fail” by Daron Acemoglu, James A. Robinson in 5 Minutes - Book Review

"Why Nations Fail: The Origins of Power, Prosperity, and Poverty" is a book authored by Daron Acemoglu, an economist, and James A. Robinson, a political scientist. Published in 2012, the book explores the underlying reasons behind the divergent paths that nations take toward economic development or failure. Acemoglu and Robinson argue that the key determinant of a nation's success or failure lies in its institutions—both political and economic. The authors distinguish between "inclusive" institutions, which encourage participation, innovation, and economic growth for a broad segment of society, and "extractive" institutions, which concentrate power and wealth in the hands of a few, stifling progress and leading to poverty. They illustrate their argument through numerous historical examples, ranging from ancient Rome to contemporary nations. "Why Nations Fail" has been widely acclaimed for its provocative thesis and rigorous analysis of historical and contemporary data. It has sparked debates among scholars and policymakers about the role of institutions in economic development and has influenced discussions on governance, democracy, and inequality.