Does wealth entirely depend on inclusive institutions and pluralist politics? A review of Daron Acemoglu and James A. Robinson, Why nations fail

Abstract

The authors of the book reviewed here need no introducing. They are amongst the most-frequently cited scholars in the social sciences. They wrote many highly influential articles, as a rule together with Simon Johnson, and already published a book together in 2006. Their book needs no further praise; it opens with jacket quotes of praise by no fewer than five Nobel-prize winners in economics, and by amongst others Jared Dia- mond, Niall Ferguson, Francis Fukuyama, Joel Mokyr, Dani Rodrik and Ian Morris. It would not make much sense to add my humble eulogy to such distinguished recommendation. I will therefore mainly confine myself to critical comments. Not because one can only criticize the book, although I am less impressed than the ‘reviewers’ I just referred to, but because amidst all that praise some critical counterpoise from an economic histo- rian can do no harm.