Bilgin Demir

Why Nations Fail is a book that explains the reasons behind the nation’s economic and political success and failure. The authors argue that some nations are prosperous, and others are poor mainly because of their political and economic institutions. Nations with inclusive institutions create an environment where people can freely participate in economic and political activities. In contrast, nations with extractive institutions concentrate power and wealth in the hands of a few, limiting opportunities for the rest of the population.

The authors also argue that the path to inclusive institutions is not linear and that countries can transition from extractive to inclusive institutions through various measures such as revolution, reform, or external intervention. The book affirms the importance of political centralization and state-building in promoting economic growth and development. Countries achieve prosperity by acquiring well-efficient checks and balances and promoting and enforcing anti-corruption laws.

I enjoyed reading the book as how it touches on the current issues some countries experience and how a minority of some rule over the rest of the population, creating a disadvantaged environment. The book should be a must-read for everyone who wants to understand the core of our world’s problems.