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Key Insights From:
Why Nations Fail: The Origins of Power, Prosperity, and Poverty
- Scholars have failed to develop a theory that adequately accounts for the successes and failures of nations.
- The view that people in tropical climates tend to be less prosperous fails to explain global wealth inequality.
- The view that differing ethics or values mean differing levels of prosperity is also contradicted by the evidence.
- The theory that ignorant rulers cause poverty implies a tidy but misguided solution to the problem.
- Inclusive institutions create prosperity and minimize inequality.
- Extractive institutions lead to poverty, inequality, and instability in nations.
- The American South became far more prosperous after its political and economic institutions became more inclusive.