Why Nations Failed?

This is a summary of the book "Why Nations Fail" by Daron Acemoglu and James A. Robinson.

The book argues that the main reason for the difference in wealth and poverty between countries is not geography, culture, or ignorance, but institutions. The authors distinguish between two types of institutions: inclusive and extractive. Inclusive economic institutions, such as protection of property rights and a level playing field, create incentives for innovation and investment. Inclusive political institutions, which distribute political power widely and are pluralistic, are necessary to support inclusive economic institutions.