“States don’t fail overnight. The seeds of of their destruction
are sown deep within their political institutions.” Is it
cutlure, weather, or Geography? What about war or some singular
event that re-writes history? In their new book, Why Nations
Fail: The Origins of Power, Prosperity, and Poverty, authors
Daron Acemoglu and James Robinson argue that man, not nature,
sows the seeds of his own destruction through political and
economic institutions. “Korea,” they write, “to take just one
example, is a remarkably homogeneous nation, yet the people of
North Korea are among the poorest on earth while their brothers
and sisters in South Korea are among the richest. The south
forges a society that created incentives, rewarded innovation,
and allowed everyone to participate in economic opportunities.”
1. Lack of property rights (e.g., North Korea) North Korea’s
economic institutions make it almost impossible for people to
own property; the state owns everything, including nearly all
land and capital. Agriculture is