Acemoglu on Why Nations Fail

Daron Acemoglu talks with host Russ Roberts about the ideas in his book, Why Nations Fail: why some nations fail and others succeed, why some nations grow and sustain growth while others grow and then stagnate. He argues that differences in institutions--political governance and the inclusiveness of the political and economic system--explain the differences in economics success across nations and over time. Acemoglu also discusses how institutions evolve and the critical role institutional change plays in economic success or failure. Along the way, he explains why previous explanations for national economic success are inadequate. The conversation closes with a discussion of the implications of the arguments for foreign aid and attempts by the wealthy nations to help nations that are poor.