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Abstract

Since Adam Smith’s ground breaking work on exploring a path that leads a nation towards glory and prosperity in his famous book “The Wealth of Nations” a number of writers, thinkers and those interested in deciphering the enigma of rise and fall of nations have followed suit. The work of Daron Acemoglu and James A. Robinson titled “Why Nations Fail: the Origins of Power, Prosperity and Poverty” is a recent addition to the knowledge pool dealing with the complex subject of assessing and analyzing the trajectory of rise and decline of a state. The book draws serious attention and is replete with strong, interesting arguments and historical accounts. The interdisciplinary approach adopted by the authors makes their work unique as both writers derive their understanding and arguments from a diverse pool of knowledge. Acemaglo an economist, and Robinson A political scientist offer a detailed and convincing perspective from an interdisciplinary amalgam of politics and economics but they largely rely on historical data to proof the thesis statement of their work which if condensed to a single statement posits that an ‘inclusive citizenry’ and an indiscriminate application and function of the ‘extractive capability’ of the state are the arch stones of a successful state while the failure to ensure these two cardinal principles leads to failure of a state. Through a broad multiplicity of historical examples the authors succinctly shed light on the importance of institutional development and the subsequent impact on the fate of a nation; even accidental institutional developments have brought far reaching impacts on the economic and political outlook of various nations. Openness of a society, encouragement of healthy competition in market economy knitted with a competitive political system, the rule of law and ‘creative destruction’, these are the ingredients which when meshed together result in the rise of a nation.