I read this book approximately one year ago but wanted to delve into it again because of all the global turmoil and strife in the world. I have read approximately forty pages thus far and I see where the authors are headed but at this point it seems that it is far more complex than what they are stating. I love this question and I hope the authors can really enlighten me.
From page 9:
“Why are the institutions of the United States so much more conducive to economic success than those of Mexico or, for that matter, the rest of Latin America? The answer to this question lies in the way the different societies formed during the early colonial period. An institutional divergence took place then, with implications lasting into the present day.”
One of the differences that the authors brought up was the different approaches used by the Spanish and the English in their conquests in the New World.
From page 26:
“It took the Virginia Company twelve years to learn its first lesson that what worked for the Spanish in Mexico and in Central and South America would not work in the north. The rest of the seventeenth century saw a long series of struggles over the second lesson: that the only option for an economically viable colony was to create institutions that gave the colonists incentives to invest and to work hard.”
- Daron Acemoglu, Understanding Prosperity and Poverty from Why Nations Fail (developmentprospects.wordpress.com)
- The Not So Common Factors Behind Inequality (economistsview.typepad.com)
- Why Nations Fail (peaceinsurgency.com)
- Daron Acemoglu on Inequality (3quarksdaily.com)
- Paul Collier on Why Nations Fail (economistsview.typepad.com)