Acemoglu and Robinson present a brilliant insight into why some nations succeed in improving the lives of their citizens and others do not. Successful countries have:
- Stable and just laws.
- Strong property laws.
- Inclusive economic institutions.
- Inclusive political system.
Failing countries have:
- Poor governance.
- exclusive economic institutions that channel benefits to the ruling clique.
- Exclusive political institutions that permit decision making by only the ruling clique.
- Rule of law not upheld.
- Private property not secure.
Inclusing economic institutions do not mean redistribution of income along the socialist or communist models, but just laws that enable the average citizen to use their available resources as they see fit. They will do what is most beneficial for themselves and their families.