The 2024 Nobel Prize for Economics was awarded in October to the authors Daron Acemoglu and James A. Robinson in part for the analysis of international inequalities in their best-selling 2012 book Why Nations Fail: The Origins of Power, Prosperity and Poverty (Crown Publishers), which arrays economic development experiences of many countries to argue that poverty and famine are due to a lack of inclusive institutions allow for broad participation in decision-making processes and provide incentives for innovation and productivity. While not specifically exploring hunger, the authors touch on agriculture and food insecurity, for instance when comparing North (extractive institutions) and South Korea (inclusive), including North Korea’s drift toward famines. The authors also look at the extractive rule of Robert Mugabe in Zimbabwe, which resulted in famine.
Acemoglu and Robinson acknowledge that geography and culture play some role, as does agency. But they array evidence that inclusive economic institutions like property rights, rule of law, ease of starting businesses, and open, competitive markets create incentives for investment, innovation, and widespread economic participation – driving sustained growth. Echoing decades of comments by other economists, they observe that many poor nations are trapped in a “vicious circle” where extractive political institutions inhibit economic reform and preserve the power and wealth of elites.
Some critics of the authors’ argument focus on reverse causality. In other words, wealthier, modernized countries are more likely to foster inclusive institutions. Bill Gates criticized the book for attributing Venice’s decline to institutional changes rather than external factors like competition in trade routes. Similarly, Gates argues that the authors overlook environmental factors like droughts in explaining the collapse of civilizations such as the Mayans.
S Hansch
