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Book review: Why Nations Fail: A Book That Shows How Power Shapes Rich and Poor Countries

3 min readApr 28, 2025

Have you ever wondered why some countries are rich and others are poor? Why some places have good schools and hospitals, while others struggle with basic needs?

The book Why Nations Fail by Daron Acemoglu and James A. Robinson tries to answer that question. But instead of saying it’s because of geography, weather, or culture, the authors say the real reason is this:

It’s all about the rules — who makes them, who benefits, and who gets left out.

A Tale of Two Cities

One of the first examples in the book is a city called Nogales. It’s split into two parts: one side is in the United States (Arizona), and the other is in Mexico (Sonora). The people on both sides are similar. They have the same weather, speak the same language, and share a history.

But life is very different.

On the U.S. side, there’s better healthcare, schools, and jobs. On the Mexico side, people are poorer and have fewer services. The authors say it’s not about the land — it’s about the institutions — the systems and rules that shape how people live.

Good Rules vs. Bad Rules

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