Powerful ideas from top nonfiction
Try Blinkist to get the key ideas from 5,500+ bestselling nonfiction titles and podcasts. Listen or read in just 15 minutes.
Start your free trial
Blink 3 of 8 - The 5 AM Club
by Robin Sharma
Listen to the Intro
Why Nations Fail summary
Daron Acemoglu & James A. Robinson
The Origins of Power, Prosperity, and Poverty
29 mins
Table of Contents
Why Nations Fail
summarized in 10 key ideas
Audio & text in the Blinkist app
Key idea 1 of 10
A country's propensity to wealth or poverty isn’t simply based on its geography, culture or knowledge base.
On the border shared by Mexico and the United States there lies a town that’s divided in half between the two nations. The residents of Nogales, Arizona have a much higher standard of living than those living south of the border in Nogales, Sonora. They have better access to healthcare and education, their crime rates are lower, and the average household income is three times higher.
What causes such differences? The geography hypothesis has been the most influential theory designed to explain such inequality – but that theory falls short here.
It was most famously espoused by the eighteenth-century French philosopher Montesquieu. He maintained that inhabitants of warmer, more tropical climates were lazier than the harder working, more resourceful types who lived in more temperate climes.
In modern times, the theory has morphed to emphasize the presence of diseases in warmer regions such as Africa, South Asia and Central America, as well as the supposed poor soil quality of those regions, which allegedly inhibits economic growth.
But it isn’t just Nogales that disproves such ideas. Just look at differences between South and North Korea, the former countries of East and West Germany, and the massive economic leaps made by Botswana, Malaysia and Singapore.
Two other classically cited theories don’t stand up either.
The first is the cultural hypothesis. In the early twentieth century, German sociologist Max Weber claimed that Western Europe's high rate of industrialization, in contrast to the rest of the world, had been caused by its “Protestant work ethic.”
But just look at Korea, a peninsula that was culturally homogenous until the split between communist North and capitalist South. The cultural hypothesis simply cannot explain the differences in inequality between the two. It’s the existence of the border that has caused such disparities, rather than deep and significant cultural differences.
The ignorance hypothesis operates in a similar field as the cultural hypothesis. It suggests that poverty results from a dearth of knowledge regarding policies that might encourage economic growth.
The counter example here is obvious: foreign aid and expert advice brought to countries in Africa have largely failed to make a lasting difference.
However, there is a more compelling theory that explains international inequality. Let’s look at it now.
Want to see all full key ideas from Why Nations Fail?
Key ideas in Why Nations Fail
More knowledge in less time
Read or listen
Get the key ideas from nonfiction bestsellers in minutes, not hours.
Find your next read
Get book lists curated by experts and personalized recommendations.
Shortcasts New
We’ve teamed up with podcast creators to bring you key insights from podcasts.
What is Why Nations Fail about?
Why Nations Fail revolves around the question as to why even today some nations are trapped in a cycle of poverty while others prosper, or at least while others appear to be on their way to prosperity. The book focuses largely on political and economic institutions, as the authors believe these are key to long-term prosperity.
Best quote from Why Nations Fail
As institutions influence behavior and incentives in real life, they forge the success or failure of nations.
—Daron Acemoglu & James A. Robinson
Who should read Why Nations Fail?
- Anyone who is interested in world politics and foreign aid
- Anyone who wants to find out why some countries are poor while others prosper
- Anyone who has thought about how we can tackle inequality in the world
Categories with Why Nations Fail
Books like Why Nations Fail
People ❤️ Blinkist
Sven O.
It's highly addictive to get core insights on personally relevant topics without repetition or triviality. Added to that the apps ability to suggest kindred interests opens up a foundation of knowledge.
Thi Viet Quynh N.
Great app. Good selection of book summaries you can read or listen to while commuting. Instead of scrolling through your social media news feed, this is a much better way to spend your spare time in my opinion.
Jonathan A.
Life changing. The concept of being able to grasp a book's main point in such a short time truly opens multiple opportunities to grow every area of your life at a faster rate.
Renee D.
Great app. Addicting. Perfect for wait times, morning coffee, evening before bed. Extremely well written, thorough, easy to use.
People also liked
Start growing with Blinkist now
26 Million
Downloads on all platforms
4.7 Stars
Average ratings on iOS and Google Play
91%
Of Blinkist members create a better reading habit*
*Based on survey data from Blinkist customers