Why Nations Fail

by Daron Acemoglu

  Our discussion of Maya history follows Martin and Grube (2000) and Webster (2002). The reconstruction of the population history of Copán comes from Webster, Freter, and Gonlin (2000). The number of dated monuments is from Sidrys and Berger (1979).

  CHAPTER 6 : DRIFTING APART

  The discussion of the Venetian case follows Puga and Trefler (2010), and chaps. 8 and 9 of Lane (1973).

  The material on Rome is contained in any standard history. Our interpretation of Roman economic institutions follows Finlay (1999) and Bang (2008). Our account of Roman decline follows Ward-Perkins (2006) and Goldsworthy (2009). On institutional changes in the late Roman Empire, see Jones (1964). The anecdotes about Tiberius and Hadrian are from Finley (1999).

  The evidence from shipwrecks was first used by Hopkins (1980). See De Callataǿ (2005) and Jongman (2007) for an overview of this and the Greenland Ice Core Project.

  The Vindolanda tablets are available online at vindolanda.csad.ox.ac.uk/. The quote we use comes from TVII Pub. no.: 343.

  The discussion of the factors that led to the decline of Roman Britain follows Cleary (1989), chap. 4; Faulkner (2000), chap. 7; Dark (1994), chap. 2.

  On Aksum, see Munro-Hay (1991). The seminal work on European feudalism and its origins is Bloch (1961); see Crummey (2000) on Ethiopian feudalism. Phillipson (1998) makes the comparison between the collapse of Aksum and the collapse of the Roman Empire.

  CHAPTER 7 : THE TURNING POINT

  The story of Lee’s machine and meeting with Queen Elizabeth I is available at calverton.homestead.com/willlee.html.

  Allen (2009b) presents the data on real wages using Diocletian’s Edict on Maximum Prices.

  Our argument about the causes of the Industrial Revolution is highly influenced by the arguments made in North and Thomas (1973), North and Weingast (1989), Brenner (1993), Pincus (2009), and Pincus and Robinson (2010). These scholars in turn were inspired by earlier Marxist interpretations of British institutional change and the emergence of capitalism; see Dobb

  (1963) and Hill (1961, 1980). See also Tawney’s (1941) thesis about how the state building project of Henry VIII changed the English social structure.

  The text of the Magna Carta is available online at the Avalon Project, at avalon.law.yale.edu/medieval/magframe.asp.

  Elton (1953) is the seminal work on the development of state institutions under Henry VIII, and Neale (1971) relates these to the evolution of parliament.

  On the Peasants’ Revolt, see Hilton (2003). The quote from Hill on monopolies is from Hill (1961), p. 25. On Charles I’s period of “personal rule,” we follow Sharp (1992). Our evidence on how different groups and regions sided either for or against Parliament comes from Brunton and Pennington (1954), Hill (1961), and Stone (2001). Pincus (2009) is fundamental on the Glorious Revolution and discusses many of the specific changes in policies and economic institutions; for example, the repeal of the Hearth Tax and the creation of the Bank of England. See also Pincus and Robinson (2010). Pettigrew (2007, 2009) discusses the attack on monopolies, including the Royal African Company, and our data on petitioning comes from his papers. Knights (2010) emphasizes the political importance of petitioning. Our information on Hoare’s Bank comes from Temin and Voth (2008).

  Our information about Superviser Cowperthwaite and the excise tax bureaucracy comes from Brewer (1988).

  Our overview of the economic history of the Industrial Revolution rests on Mantoux (1961), Daunton (1995), Allen (2009a), and Mokyr (1990, 2009), who provide details on the famous inventors and inventions we discuss. The story about the Baldwyn family is from Bogart and Richardson (2009, 2011), who stress the connection between the Glorious Revolution, the reorganization of property rights, and the construction of roads and canals. On the Calicoe Acts and Manchester Acts, see O’Brien, Griffiths, and Hunt (1991), which is the source of the quotes from the legislation. On the dominance of new people in industry, see Daunton (1995), chap. 7, and Crouzet (1985).

  Our account of why the major institutional changes first took place in England is based on Acemoglu, Johnson, and Robinson (2005a) and Brenner (1976). The data on the number of independent merchants and their political preferences come from Zahedieh (2010).

  CHAPTER 8 : NOT ON OUR TURF

  On the opposition to the printing press in the Ottoman Empire, see Savage-Smith (2003) pp. 656–59. Comparative historical literacy comes from Easterlin (1981).

  Our discussion of political institutions of Spain follows Thompson (1994a, 1994b). For evidence on the economic decline of Spain over this period, see Nogal and Prados de la Escosura (2007).

  Our discussion of the impediments to economic development in Austria-Hungary follows Blum (1943), Freudenberger (1967), and Gross (1973). The quotation from Maria Theresa comes from Freudenberger, p. 495. All other quotations from Count Hartig and Francis I are from Blum. Francis’s reply to the delegates from the Tyrol is quoted from Jászi (1929), pp. 80–81. The comment of Friedrich von Gentz to Robert Owen is also quoted from Jászi (1929), p. 80. The experience of the Rothschilds in Austria is discussed in chap. 2 of Corti (1928).

  Our analysis of Russia follows Gerschenkron (1970). The quotation from Kropotkin is from p. 60 of the 2009 edition of his book. The conversation between Nicholas and Mikhail is quoted from Saunders (1992), p. 117. Kankrin’s quote on railways is in Owen (1991), pp. 15–16.

  The speech by Nicholas to the manufacturers is reproduced from Pintner 967), p. 100.

  The quote from A. A. Zakrevskii is from Pintner (1967), p. 235.

  On Admiral Zheng, see Dreyer (2007). The economic history of early Modern China is covered by Myers and Wang (2002). The quote from T’ang Chen is quoted from Myers and Wang, pp. 564–65.

  See Zewde (2002) for an overview of the relevant Ethiopian history. The data on how extractive Ethiopia has been historically come from Pankhurst (1961), as do all the quotes we reproduce here.

  Our description of Somali institutions and history follows Lewis (1961, 2002). The heer of the Hassan Ugaas is reproduced on p.177 of Lewis (1961); our description of a feud comes from chap. 8 of Lewis (1961), where he reports many other examples. On the Kingdom of Taqali and writing, see Ewald (1988).

  CHAPTER 9 : REVERSING DEVELOPMENT

  Our discussion of the takeover of Ambon and Banda by the Dutch East India Company and the company’s negative effect on the development of Southeast Asia follows Hanna (1978) and particularly Reid (1993), chap. 5. The quotes from Reid on Tomé Pires are from p. 271; the Dutch factor in Maguindanao, p. 299; the sultan of Maguindanao, pp. 299–300. Data on the impact of the Dutch East India Company on the price of spices come from O’Rourke and Williamson (2002).

  A definitive overview of slavery in African society and the impact of the slave trade is Lovejoy (2000). Lovejoy, p. 47, Table 31, reports consensus estimates of the extent of the slave trade. Nunn (2008) provided the first quantitative estimates of the impact of the slave trade on African economic institutions and economic growth. The data on firearms and gunpowder imports are from Inikori (1977). The testimony of Francis Moore is quoted from Lovejoy (2000), pp. 89–90. Law (1977) is a seminal study of the expansion of the Oyo state. The estimates of the impact of the slave trade on population in Africa are taken from Manning (1990). Lovejoy (2000), chap. 8, the essays in Law (1995), and the important book of Austin (2005) are the basis for our discussion of the analysis of the period of “legitimate commerce.” Data on the proportion of Africans who were slaves in Africa comes from Lovejoy (2000), e.g., p. 192, Table 9.2.

  Data on labor in Liberia is from Clower, Dalton, Harwitz, and Walters (1966).

  The dual economy idea was developed by Lewis (1954). Fergusson (2010) develops a mathematical model of the dual economy. The notion that this was a creation of colonialism was first proposed in the seminal collection of essays edited by Palmer and Parsons (1977). Our account of South Africa is based on Bundy (1979) and Feinstein (2005).

  The Moravian missionary is quoted in Bundy (1979), p. 46
, and John Hemming is quoted in Bundy, p. 72. The spread of land ownership in Griqualand East is from Bundy, p. 89; the exploits of Stephen Sonjica are from Bundy, p. 94; the quote from Matthew Blyth is from p. 97; and the quote from a European observer in Fingoland 1884 is from Bundy, pp. 100–101. George Albu is quoted in Feinstein (2005), p. 63; secretary for native affairs is quoted from Feinstein, p. 45; and Verwoerd is quoted from Feinstein, p. 159. Data on the real wages of African gold miners are from p. 66 of Wilson (1972). G. Findlay is quoted in Bundy (1979), p. 242.

  The notion that the development of the rich countries of the West is the mirror image of the underdevelopment of the rest of the world was originally developed by Wallertsein (1974–2011), though he emphasizes very different mechanisms than we do.

  CHAPTER 10 : THE DIFFUSION OF PROSPERITY

  This chapter builds heavily on our previous research with Simon Johnson and Davide Cantoni: Acemoglu, Johnson, and Robinson (2002) and Acemoglu, Cantoni, Johnson, and Robinson (2010, 2011).

  Our discussion of the development of early institutions in Australia follows the seminal work of Hirst (1983, 1988, 2003) and Neal (1991). The original manuscript of the writ issued to Judge Collins is available (thanks to the Macquarie University Law School in Australia) at www.law.mq.edu.au/scnsw/html/Cable%20v%20Sinclair,%201788.htm.

  Macarthur’s characterization of Wentworth’s supporters is quoted from Melbourne (1963), pp. 131–32.

  Our discussion of the origins of the Rothschilds follows Ferguson (1998); Mayer Rothschild’s remark to his son is reproduced from Ferguson, p. 76.

  Our discussion of the impact of the French on European institutions is taken from Acemoglu, Cantoni, Johnson, and Robinson (2010, 2011) and the references therein. See Doyle (2002) for a standard overview of the French Revolution. Information on the feudal dues in Nassau-Usingen is from Lenger (2004), p. 96. Ogilivie (2011) overviews the historical impact of guilds on European development.

  For a treatment of the life of (Ōkubo Toshimichi, see Iwata (1964). Sakamoto Ryūma’s eight-point plan is reproduced from Jansen (2000), p. 310.

  CHAPTER 11 : THE VIRTUOUS CIRCLE

  Our discussion of the Black Act follows Thompson (1975). Baptist Nunn’s report of June 27 is from Thompson (1975), pp. 65–66. The other quotes are from Thompson’s section on the rule of law, pp. 258–69, which is well worth reading in its entirety.

  Our approach to democratization in England is based on Acemoglu and Robinson (2000a, 2001, and 2006a). Earl Grey’s speech is quoted from Evans (1996), p. 223. Stephens’s comment about democracy is quoted in Briggs (1959), p. 34. Thompson’s quote is from Thompson (1975), p. 269.

  The entire text of the People’s Charter can be found in Cole and Filson (1951) and at web.bham.ac.uk/1848/document/peoplech.htm.

  The quote from Burke is taken from Burke (1790/1969), p. 152.

  Lindert (2004, 2009) is a seminal treatment of the coevolution of democracy and public policy over the past two hundred years.

  Keyssar (2009) is a seminal introduction to the evolution of political rights in the United States. Vanderbilt is quoted in Josephson (1934), p. 15. The text of Roosevelt’s address is at www.theodore-roosevelt.com/sotu1.html.

  The quote from Woodrow Wilson is from Wilson (1913), p. 286.

  The text of President Roosevelt’s Fireside Chat can be found at miller-center.org/scripps/archive/speeches/detail/3309.

  Data on the relative tenure of Supreme Court justices in Argentina and the United States is presented in Iaryczower, Spiller, and Tommasi (2002). Helmke (2004) discusses the history of court packing in Argentina and quotes Justice Carlos Fayt.

  CHAPTER 12 : THE VICIOUS CIRCLE

  This chapter heavily relies on our theoretical and empirical research on institutional persistence, particularly Acemoglu, Johnson, and Robinson (2005b) and Acemoglu and Robinson (2008a). Heath (1972) and Kelley and Klein (1980) made a seminal application of the iron law of oligarchy to the 1952 Bolivian Revolution.

  The quote from the British parliamentary papers is reproduced from p. 15 of House of Commons (1904). The early political history of postindependence Sierra Leone is well told in Cartwright (1970). Though interpretations differ as to why Siaka Stevens pulled up the railway line, the salient one is that he did this to isolate Mendeland. In this we follow Abraham and Sesay (1993), p. 120; Richards (1996), pp. 42–43; and Davies (2007), pp. 684–85. Reno (1995, 2003) are the best treatments of Stevens’s regime. The data on the agricultural marketing boards comes from Davies (2007). On the murder of Sam Bangura by defenestration, see Reno (1995), pp. 137–41. Jackson (2004), p. 63, and Keen (2005), p. 17, discuss the acronyms ISU and SSD.

  Bates (1981) is the seminal analysis of how marketing boards destroyed agricultural productivity in postindependence Africa, see Goldstein and Udry (2009) on how political connections to chiefs determine property rights to land in Ghana.

  On the relation between politicians in 1993 and the conquistadors, see Dosal (1995), chap. 1, and Casaús Arzú (2007). Our discussion of the policies of the Consulado de Comercio follows Woodward (1966). The quote from President Barrios is from McCreery (1994), pp. 187–88. Our discussion of the regime of Jorge Ubico follows Grieb (1979).

  Our discussion of the underdevelopment of the U.S. South follows Acemoglu and Robinson (2008b). See Wright (1978) on the pre–Civil War development of the slave economy, and Bateman and Weiss (1981) on the dearth of industry. Fogel and Engerman (1974) give a different and controversial interpretation. Wright (1986) and Ransom and Sutch (2001) give overviews of the extent to which the southern economy after 1865 really changed. Congressman George Washington Julian is quoted in Wiener (1978), p. 6. The same book contains the analysis of the persistence of the southern landed elite after the Civil War. Naidu (2009) examines the impact of the introduction of poll taxes and literacy tests in the 1890s in southern states. The quotation from W.E.B. Du Bois is in his book Du Bois (1903), p. 88. Clause 256 of the Alabama constitution can be found at www.legislature.state.al.us/CodeOfAlabama/Constitution/

  1901/CA-245806.htm.

  Alston and Ferrie (1999) discuss how southern politicians blocked federal legislation they thought would disrupt the South’s economy. Woodward (1955) gives a seminal overview of the creation of Jim Crow.

  Overviews of the Ethiopian revolution are provided in Halliday and Molyneux (1981). On the Emperor’s cushions, see Kapuściński (1983). The quotes from Dawit Wolde Giorgis are from Dawit Wolde Giorgis (1989), pp. 49 and 48, respectively.

  CHAPTER 13 : WHY NATIONS FAIL TODAY

  For the BBC report on Mugabe’s lottery success, including the public statement of Zimbank, see news.bbc.co.uk/2/hi/africa/621895.stm.

  Our treatment of the creation of white rule in Rhodesia follows Palmer (1977) and Alexander (2006). Meredith (2007) provides a good overview of more recent Zimbabwean politics.

  Our account of the civil war in Sierra Leone follows Richards (1996), Truth and Reconciliation Commission (2004), and Keen (2005). The analysis published in a newspaper in the capital city of Freetown in 1995 is quoted from Keen (2005), p. 34. The text of the RUF’s “Footpaths to Democracy” can we found at www.sierra-leone.org/AFRC-RUF/footpaths.html.

  The quotation from the teenager from Geoma is from Keen (2005), p. 42.

  Our discussion of the Colombian paramilitaries follows Acemoglu, Robinson, and Santos (2010) and Chaves and Robinson (2010), which in turn heavily rely on the extensive work by Colombian scholars, particularly Romero (2003), the essays in Romero (2007), and López (2010). León (2009) is an accessible and balanced account of the nature of contemporary conflicts in Colombia. Also fundamental is the Web site run by the weekly newspaper Semana, www.verdadabierta.com/. All the quotes come from Acemoglu, Robinson, and Santos (2010). The contract between Martín Llanos and the mayors in Casanare is available in Spanish at www.verdadabierta.com/victimarios/los-jefes/714-perfil-hector-german-buitrago-alias-martin-llanos.

  The origins and consequences of El Corralito
are well presented in a series of articles in The Economist magazine, available at www.economist.com/search/apachesolr_search/corralito.

  On the role of the interior in Argentine development, see Sawers (1996).

  Hassig and Oh (2009) provides an excellent, valuable account of life in North Korea. Chap. 2 covers the luxurious lifestyle of the leadership, and chaps. 3 and 4, the economic realities that most people face. The BBC coverage of the currency reform can be found at news.bbc.co.uk/2/hi/8500017.stm. On the pleasure palace and brandy consumption, see chap. 12 of Post (2004).

  Our discussion of child labor and its use for picking cotton in Uzbeksitan follows Kandiyoti (2008), available at www.soas.ac.uk/cccac/events/cotton-sector-in-central-asia-2005/file49842.pdf. The quote from Gulnaz is on p. 20 of Kandiyoti. On the Andijon uprising, see International Crisis Group (2005). The description of the election of Joseph Stalin in the Soviet Union is reproduced from Denny (1937).

  Our analysis of “crony capitalism” in Egypt follows Sfakianakis (2004).

  CHAPTER 14 : BREAKING THE MOLD

  Our treatment of Botswana follows Acemoglu, Johnson, and Robinson (2003); Robinson and Parsons (2006); and Leith (2005). Schapera (1970) and Parsons, Henderson, and Tlou (1995) are fundamental works. High Commissioner Rey is quoted in Acemoglu, Johnson, and Robinson (2003), p. 96. The discussion of the three chiefs’ visit to England follows Parsons (1998), and all quotes relating to this come from his book: Chamberlain, pp. 206–7; Fairfield, p. 209; and Rhodes, p. 223. Schapera is quoted from Schapera (1940), p. 72. The quote from Quett Masire is from Masire (2006), p. 43. On the ethnic composition of the Tswana tribes, see Schapera (1952).