Why Nations Fail Terms

Absolutist political systems concentrate power instead of distributing it broadly to different people, groups, and institutions throughout society. The opposite of absolutism is pluralism. read analysis of Absolutism

Apartheid was the highly unequal, extractive system of racial segregation in South Africa and Namibia from 1948 to 1994. The word can also be used to refer more generally to separation or segregation. read analysis of Apartheid

The Arab Spring was a widespread series of anti-government protests across North Africa and the Middle East from late 2010 to 2012. These protests were ongoing when Acemoglu and Robinson published Why Nations Fail. read analysis of The Arab Spring

Creative destruction is the process by which new technologies outcompete existing ones, making them obsolete. A classic example of creative destruction is automation making many weaving jobs obsolete during the Industrial Revolution. Economists generally… read analysis of Creative Destruction

A dual economy is a system in which part of an economy is formal, modern, and urban, while the rest is informal, traditional, and rural. The pioneering economist Sir Arthur Lewis suggested that economic development… read analysis of Dual Economy

Spanish settlers in colonial Latin America received grants called encomiendas, which usually consisted of a parcel of land and a population of enslaved indigenous people. The highly extractive encomienda labor system enriched this white… read analysis of Encomienda

Extractive political and economic institutions are designed to benefit the elite class that holds power in society. These institutions do not benefit the majority of citizens (who are better served by inclusive institutions). Specifically… read analysis of Extractive Political and Economic Institutions

Feudalism was the economic and social system of medieval Europe. In this system, kings granted land to lords, who provided military defense to the king and employed serfs (or peasants) to work their land. read analysis of Feudalism

In medieval Europe (and especially in France), society was officially divided into three groups. The clergy was called the First Estate, the nobility was called the Second Estate, and the rest of society (mostly landless… read analysis of First, Second, and Third Estates

During the French Revolution, which spanned from 1789 to 1799, common people overthrew the French monarchy and established an egalitarian republic (although only after a significant period of absolutist turmoil and violence). read analysis of The French Revolution

The Glorious Revolution was a brief conflict between the British monarchy and Parliament in 1688. Parliament was victorious—it replaced King James II and, more importantly, took over all real authority from the monarchy. Acemoglu and… read analysis of The Glorious Revolution

Historical contingency is the concept that history could have been otherwise. Events aren’t predetermined, but rather result from a combination of earlier events, circumstances, human decisions, and chance. read analysis of Historical Contingency

Inclusive political and economic institutions are designed to benefit the majority of society (and not just the elite, which benefits most from extractive institutions). The authors argue that political systems need to broadly distribute… read analysis of Inclusive Political and Economic Institutions

The Industrial Revolution was the period of rapid innovation and technological change that began in England in the late 18th century and quickly spread to other inclusive nations like the United States. It transformed manufacturing… read analysis of The Industrial Revolution

The iron law of oligarchy suggests that new governments tend to reproduce old leadership structures, even after taking away power from their predecessors. Therefore, revolutionaries who overthrow absolutist, extractive regimes often create similar regimes… read analysis of The Iron Law of Oligarchy

The Meiji Restoration was a political revolution that transformed Japan in 1868. Regional leaders overthrew the traditional Tokugawa government and replaced it with more pluralistic, inclusive institutions. Acemoglu and Robinson argue that this… read analysis of The Meiji Restoration

The Neolithic Revolution was humankind’s transition from a nomadic hunting-gathering lifestyle to a settled lifestyle based on agriculture—a transition that began around the year 9600 BC in the Middle East. read analysis of The Neolithic Revolution

Pluralist political systems are those that distribute power broadly and represent the interests of diverse groups of people. Pluralism is necessary when it comes to establishing inclusive institutions. read analysis of Pluralism

Rule of law is the political concept that the law applies equally to everyone, including elites and government officials. The rule of law is an important check on abuses of power, and it promotes inclusive… read analysis of Rule of Law

Centralization refers to how much power a nation’s central government has over its territory and people. Under decentralized states, the government may not be strong enough to perform basic functions and may not even fully… read analysis of State Centralization

The Tswana are the main ethnic group in Botswana and the northwest province of South Africa. read analysis of Tswana

The vicious circle is the cycle by which extractive institutions reinforce themselves over time—or even get worse—because they give elites the wealth and power they need to build even more extractive institutions. It’s the opposite… read analysis of Vicious Circle

The virtuous circle is the cycle by which inclusive institutions become more inclusive over time. Inclusive institutions gradually extend power to the masses, and the masses use this power to demand and achieve more power… read analysis of Virtuous Circle