Why Nations Fail

by

Daron Acemoglu and James A. Robinson

Virtuous Circle Term Analysis

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, which makes institutions even more inclusive. The virtuous circle is the opposite of the vicious circle.

Virtuous Circle Quotes in Why Nations Fail

The Why Nations Fail quotes below are all either spoken by Virtuous Circle or refer to Virtuous Circle. 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
).
Chapter 11 Quotes

The rule of law is not imaginable under absolutist political institutions. It is a creation of pluralist political institutions and of the broad coalitions that support such pluralism. It’s only when many individuals and groups have a say in decisions, and the political power to have a seat at the table, that the idea that they should all be treated fairly starts making sense. By the early eighteenth century, Britain was becoming sufficiently pluralistic, and the Whig elites would discover that, as enshrined in the notion of the rule of law, laws and institutions would constrain them, too.

Related Characters: Daron Acemoglu and James A. Robinson (speaker), The Whig Party
Page Number: 306
Explanation and Analysis:

The British example, an illustration of the virtuous circle of inclusive institutions, provides an example of a “gradual virtuous circle.” The political changes were unmistakably toward more inclusive political institutions and were the result of demands from empowered masses. But they were also gradual. Every decade another step, sometimes smaller, sometimes larger, was taken toward democracy. There was conflict over each step, and the outcome of each was contingent. But the virtuous circle created forces that reduced the stakes involved in clinging to power. […] There is great virtue in this sort of gradual change. It is less threatening to the elite than the wholesale overthrow of the system. Each step is small, and it makes sense to give in to a small demand rather than create a major showdown.

Related Characters: Daron Acemoglu and James A. Robinson (speaker)
Page Number: 317
Explanation and Analysis:
Get the entire Why Nations Fail LitChart as a printable PDF.
Why Nations Fail PDF

Virtuous Circle Term Timeline in Why Nations Fail

The timeline below shows where the term Virtuous Circle appears in Why Nations Fail. The colored dots and icons indicate which themes are associated with that appearance.
Chapter 11: The Virtuous Circle
Global Inequality and Economic Growth Theme Icon
History and Institutional Change Theme Icon
Cycles of Wealth and Poverty Theme Icon
...absolutism. And once England created inclusive institutions, the rule of law reinforced itself in a virtuous circle . (full context)
History and Institutional Change Theme Icon
Cycles of Wealth and Poverty Theme Icon
...inclusive in the 1700s—for instance, the vast majority of people still couldn’t vote. But “the virtuous circle of inclusive institutions” made it more and more pluralistic over time. In the early 19th... (full context)
Global Inequality and Economic Growth Theme Icon
History and Institutional Change Theme Icon
Cycles of Wealth and Poverty Theme Icon
Diversity, Pluralism, and Empowerment Theme Icon
...minimum wage. It even started providing free, universal education. These changes all show how “the virtuous circle of inclusive institutions” can gradually make societies more democratic over the course of decades. Plus,... (full context)
Global Inequality and Economic Growth Theme Icon
Cycles of Wealth and Poverty Theme Icon
...Like many Latin American countries, Argentina has been stuck in a vicious circle, not a virtuous one . In contrast, the US’s inclusive institutions have kept the Supreme Court independent. (full context)
Global Inequality and Economic Growth Theme Icon
History and Institutional Change Theme Icon
Cycles of Wealth and Poverty Theme Icon
Diversity, Pluralism, and Empowerment Theme Icon
Acemoglu and Robinson conclude this chapter with “Positive Feedback and Virtuous Circles .” They argue that societies create inclusive institutions at critical junctures, when elites fail to... (full context)
Chapter 12: The Vicious Circle
Global Inequality and Economic Growth Theme Icon
Cycles of Wealth and Poverty Theme Icon
...Feedback and Vicious Circles.” Inclusive institutions tend to become more inclusive over time, in a virtuous circle . Pluralism checks abuses of power and creates inclusive economic institutions, which spread wealth and... (full context)
Chapter 15: Understanding Prosperity and Poverty
Cycles of Wealth and Poverty Theme Icon
...reinforce each other in a vicious circle, while inclusive ones do the same in a virtuous circle . These circles are strong, but not unbreakable. For instance, a few societies have broken... (full context)