“Why Nations Fail” by Daron Acemoglu addresses the question of why some nations are wealthy while others remain poor. In contrast, Jared Diamond’s “Guns, Germs, and Steel” attributes global inequality to geographic factors, suggesting that climate and diseases play a crucial role.
Acemoglu argues that the prosperity of nations stems from inclusive economic institutions, which create incentives for saving, investing, and innovating. In contrast, extractive institutions fail to promote these behaviors.
While the authors use case studies to support their hypotheses, I find the limited number of examples unconvincing from a scientific and statistical standpoint. Numerous variables, including geography, culture, history, and economic institutions, influence national wealth. Additionally, the dominant factors related to prosperity may change over time and vary depending on specific circumstances.
