Includes bibliographical references and index. Acemoglu, D., & Robinson, J. A. (2012). Why nations fail : The origins of power, prosperity, and poverty. New York : Crown Publishers.

I. So close and yet so different -- II. Theories that don't work -- III. The making of prosperity and poverty -- IV. Small differences and critical junctures: the weight of history -- V. "I've seen the future, and it works" growth under extractive institutions -- VI: Drifting apart -- VII. The turning point --VIII. Not on our turf: barriers to development -- IX. Reversing development -- X. The diffusion of prosperity XI. The virtuous circle -- XII. The vicious circle -- XIII. Why nations fail today -- XIV. Breaking the mold -- XV. Understanding prosperity and poverty

This is a provocative new theory of political economy explaining why the world is divided into nations with wildly differing levels of prosperity. Why are some nations more prosperous than others? "Why Nations Fail" sets out to answer this question, with a compelling and elegantly argued new theory: that it is not down to climate, geography or culture, but because of institutions. Drawing on an extraordinary range of contemporary and historical examples, from ancient Rome through the Tudors to modern-day China, leading academics Daron Acemoglu and James A. Robinson show that to invest and prosper, people need to know that if they work hard, they can make money and actually keep it - and this means sound institutions that allow virtuous circles of innovation, expansion and peace. Based on fifteen years of research, and answering the competing arguments of authors ranging from Max Weber to Jeffrey Sachs and Jared Diamond, Acemoglu and Robinson step boldly into the territory of Francis Fukuyama and Ian Morris. They blend economics, politics, history and current affairs to provide a new, powerful and persuasive way of understanding wealth and poverty. They offer a pragmatic basis for the hope that at 'critical junctures' in history, those mired in poverty can be placed on the path to prosperity - with important consequences for our views on everything from the role of aid to the future of China.