State Centralization Analysis in Why Nations Fail

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 control certain regions of the country. Acemoglu and Robinson argue that centralization is key to building inclusive institutions.

State Centralization Quotes in Why Nations Fail

The Why Nations Fail quotes below are all either spoken by State Centralization or refer to State Centralization. For each quote, you can also see the other terms and themes related to it (each theme is indicated by its own dot and icon, like this one:

Global Inequality and Economic Growth Theme Icon

England was unique among nations when it made the breakthrough to sustained economic growth in the seventeenth century. Major economic changes were preceded by a political revolution that brought a distinct set of economic and political institutions, much more inclusive than those of any previous society. […] The Glorious Revolution limited the power of the king and the executive, and relocated to Parliament the power to determine economic institutions. At the same time, it opened up the political system to a broad cross section of society, who were able to exert considerable influence over the way the state functioned. The Glorious Revolution was the foundation for creating a pluralistic society, and it built on and accelerated a process of political centralization. It created the world’s first set of inclusive political institutions.

Related Characters: Daron Acemoglu and James A. Robinson (speaker)

Explanation and Analysis:

Extractive institutions are so common in history because they have a powerful logic: they can generate some limited prosperity while at the same time distributing it into the hands of a small elite. For this growth to happen, there must be political centralization. Once this is in place, the state—or the elite controlling the state—typically has incentives to invest and generate wealth, encourage others to invest so that the state can extract resources from them, and even mimic some of the processes that would normally be set in motion by inclusive economic institutions and markets.

Related Characters: Daron Acemoglu and James A. Robinson (speaker)

Page Number and Citation: 149

Explanation and Analysis:

The process of political centralization can actually lead to a form of absolutism, as the king and his associates can crush other powerful groups in society. This is indeed one of the reasons why there will be opposition against state centralization, as we saw in chapter 3. However, in opposition to this force, the centralization of state institutions can also mobilize demand for a nascent form of pluralism, as it did in Tudor England. When the barons and local elites recognize that political power will be increasingly more centralized and that this process is hard to stop, they will make demands to have a say in how this centralized power is used. […] The Tudor project not only initiated political centralization, one pillar of inclusive institutions, but also indirectly contributed to pluralism, the other pillar of inclusive institutions.

Related Characters: Daron Acemoglu and James A. Robinson (speaker)

Page Number and Citation: 186-187

Explanation and Analysis:

State Centralization Term Timeline in Why Nations Fail

The timeline below shows where the term State Centralization appears in Why Nations Fail. The colored dots and icons indicate which themes are associated with that appearance.

...on its exercise—tend to have inclusive economic institutions. However, the state also needs to be centralized and powerful enough to create these institutions. For example, in Somalia, power is distributed so... (full context)

...they only create pluralistic institutions when the masses force them to. Elites also usually oppose centralization because it tends to cause conflict, which threatens their status—so nations can only centralize when... (full context)

...Mobutu extracted as much wealth as he could from the country, his state barely had centralized power over it, which led to further conflict. Today, the Democratic Republic of the Congo... (full context)

In all these cases, extractive political institutions have needed strong centralization in order to achieve economic growth. In general, they can’t create long-term growth or creative... (full context)

...the Industrial Revolution. But they wouldn’t have been possible without England’s inclusive political institutions—especially its centralized state and strong anti-monarchy coalition. (full context)

...has had the most trouble building effective institutions. In general, it has struggled to form centralized states. Moreover, the profitable transatlantic slave trade encouraged African states like the Kingdom of Kongo... (full context)

...Empire set up absolutist, highly extractive institutions throughout the Middle East. It wasn’t as highly centralized as other empires and it struggled to collect taxes, but it still created highly unfavorable... (full context)

...forced men to spend fewer years fighting and more working in the fields. Thus, Shyaam centralized and organized society enough to create an economic surplus—which he then extracted and kept for... (full context)

...the Long Summer, Acemoglu and Robinson argue, societies’ development depended on institutional differences—like the Natufians’ centralized, hierarchical society. But Natufian society didn’t create long-term prosperity, since its institutions were extractive instead... (full context)

...Based on inscriptions and analysis of obsidian rock, archaeologists know that Maya city-states were highly centralized, extractive societies led by kings and aristocratic elites. This system led to rapid economic expansion,... (full context)

...can extract a surplus from the masses who create it. This process often creates powerful centralized institutions, like Shyaam’s kingdom and the first settlements of the Neolithic Revolution. But extractive institutions... (full context)

...more power. Similarly, from the initial human settlement of the Americas through European conquest, most centralized institutions there were also highly extractive. (full context)

...Henry VII’s ascension to the throne in 1485. Henry VII weakened the aristocracy and started centralizing state power in his own hands. Then, his son Henry VIII created a government bureaucracy... (full context)

Finally, during the Glorious Revolution, Parliament continued to centralize and expand the state. Its budget became about ten percent of the nation’s total income,... (full context)

...Ottoman and Russian Empires, fought industrialization because they feared creative destruction. Second, societies without a centralized state couldn’t create the basic institutions needed for industrialization to succeed. (full context)

Powerful people often resist centralization because they fear it will take away their power. It threatens leaders because it can... (full context)

...Crown shut it down. But this left the Crown unable to collect taxes, which made centralization impossible. While the English were building “a modern, efficient tax bureaucracy” and rapidly industrializing, the... (full context)

The Habsburg leaders all made the state much more centralized and absolutist. Without a parliament or constitution, they had absolute power over everything in their... (full context)

...(960-1279), China was highly technologically advanced compared to Europe. It also ran as a complex, centralized—but absolutist and extractive—state. Merchants and the public had no political power, and the emperor fought... (full context)

...the heading “The Children of Samaale,” Acemoglu and Robinson argue that a lack of state centralization prevented inclusive institutions from forming in much of Africa. As a case study, they look... (full context)

...decision-making practices, Somalia was historically pluralistic, but its institutions weren’t inclusive because there was no centralized state to impose order or guarantee property rights. As such, Somalia could not have possibly... (full context)

...because of extractive institutions, absolutist rulers who fear creative destruction, or a lack of political centralization. But societies with inclusive institutions, or where citizens challenge absolutism, manage to set off explosive... (full context)

...led African countries to reorganize their economies around enslaving and fight wars that destroyed their centralized institutions. European colonialism impoverished South Africa by creating a dual economy for the benefit of... (full context)

...inclusive institutions. Finally, while Ethiopia remained absolutist, the slave trade created extractive societies and destroyed centralized institutions throughout much of Africa. These patterns are the foundation for contemporary global inequalities. With... (full context)

While Colombia isn’t a failed state, it does lack government centralization and public services, especially in rural areas. This continues in a kind of vicious circle... (full context)

...managed to coordinate and petition the British government because Tswana states have a history of centralized and pluralistic institutions. For instance, in many Tswana states, a tribal assembly of adult men... (full context)

...Ultimately, the Tswana chiefs’ lobbying efforts were successful in part because of their inclusive and centralized state institutions. (full context)

At the critical juncture of its independence, Botswana harnessed its history of centralization and pluralism. A broad coalition of chiefs and elites worked together to build the political... (full context)

...the economy fairer. Inclusive political institutions reinforce these inclusive economic institutions through pluralism and state centralization. (full context)

...the world, although some poor countries will surely become rich by “breaking the mold.” Highly decentralized countries like Afghanistan, Haiti, and Somalia are unlikely to grow very much. But highly centralized... (full context)

...Acemoglu and Robinson admit that there’s no formula for empowering citizens or creating inclusive institutions. Centralization, existing pluralistic institutions, and community organizations can all help empower people. In particular, the media... (full context)

State Centralization Term Analysis

State Centralization Quotes in Why Nations Fail

State Centralization Term Timeline in Why Nations Fail