Why Nations Fail: The Origins of Power, Prosperity, and Poverty - Chapters 12-13, The Vicious Circle, Why Nations Fail Today Summary & Analysis

Daron Acemoğlu
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In Chapter 12, the authors shift to the idea of a vicious circle, where some institutions and social changes tend to convert societies from less extractive to more extractive institutions over time. The chapter opens with the authors arguing that Sierra Leone suffered a major vicious cycle, via the breakdown of land ownership, undermined food production, as well as with other sub-Saharan African nations. Marketing boards in these countries were unkind to rural interests because they had no political power. Oddly, the British helped push extractive institutions in Sierra Leone, but they allowed inclusive institutions to flourish in Australia. This is partly due to the presence of mineral resources, which often involves a "resource curse" where powerful elites can effectively extract wealth by exploiting these resources. As a result, they...

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This section contains 836 words
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Buy the Why Nations Fail: The Origins of Power, Prosperity, and Poverty Study Guide
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