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Chapter 13
Themes
and Colors
Key
LitCharts assigns a color and icon to each theme in Why Nations Fail, which you can use to track the themes throughout the work.
Global Inequality and Economic Growth
History and Institutional Change
Cycles of Wealth and Poverty
Diversity, Pluralism, and Empowerment
Summary
Analysis
In this chapter, Acemoglu and Robinson’s first section is “Three African Chiefs.” In 1895, three Tswana chiefs from southern Africa visited England. The imperialist businessman Cecil Rhodes was trying to take over Tswana land. But on their trip, the Tswana chiefs successfully convinced the British government to do it first, so that Rhodes couldn’t.
In the last two chapters, Acemoglu and Robinson have argued that many poor countries remain poor today because they are trapped in the vicious circle of extractive institutions. They have also emphasized that breaking out of this cycle is incredibly difficult, which helps explain why so few poor nations have managed to become rich. However, in this chapter, they look closely at these exceptions in order to emphasize that change is possible and show their readers what it takes. Their first example is Botswana.
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Acemoglu and Robinson argue that the three Tswana chiefs managed to coordinate and petition the British government because Tswana states have a history of centralized and pluralistic institutions. For instance, in many Tswana states, a tribal assembly of adult men can disagree with the chief or even overrule him. Similarly, Tswana groups often choose chiefs based more on ability than heredity. Because of these institutions, the Tswana were used to resolving conflicts through democratic means and generally viewed their leaders as their legitimate representatives. Therefore, when the three chiefs went to London, they had their people’s support.
The Tswana chiefs’ visit to London was remarkable, and not just because they were asking to be colonized (which they viewed as the lesser of two evils). The authors have frequently emphasized that most of sub-Saharan Africa lacked centralized institutions on the eve of colonization, in large part because of conflict and the slave trade. But Botswana was clearly an exception. Traditional Tswana institutions are pluralistic because they let different groups voice their concerns in government and give ultimate power to the people as a whole, and not to the leader. But they’re also centralized because they make effective decisions on a collective basis, then implement those decisions in a relatively fair way. Because they were both centralized and pluralistic, Tswana institutions were inclusive. This explains why Tswana leaders could go to London and legitimately negotiate with the British on behalf of their people. In contrast, people living under extractive institutions often consider their political leaders illegitimate because they recognize that these leaders neither want nor try to represent the people’s best interests.
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Still, Tswana chiefs tried to stay independent from the British, who built railroads through their land but otherwise didn’t colonize it. This helped the Tswana avoid extractive institutions over time. Ultimately, the Tswana chiefs’ lobbying efforts were successful in part because of their inclusive and centralized state institutions.
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Upon its independence in 1966, Botswana was extremely poor. It had virtually no infrastructure or education system, and its neighbors were all white apartheid regimes. However, it grew extremely fast and is now sub-Saharan Africa’s wealthiest country. It succeeded by building inclusive institutions. Politically, Botswana is a democracy with regular elections and no armed conflict. Economically, its laws protect property rights and encourage innovation and investment.
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At the critical juncture of its independence, Botswana harnessed its history of centralization and pluralism. A broad coalition of chiefs and elites worked together to build the political system. The independence movement’s leaders insisted on respecting elections and promoting democracy. After independence, these leaders carefully regulated the country’s two main industries: meat and diamonds. In fact, they funded the state by nationalizing and carefully managing the diamond industry. Botswana’s cultural policies have encouraged different groups to work together—for instance, even though it’s a diverse country, the government defines everyone as ethnically Tswana. In short, Botswana chose to build inclusive political institutions upon independence, which allowed it to create inclusive economic institutions and achieve sustained economic growth.
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The next section, “The End of the Southern Extraction,” starts with Rosa Parks launching the Montgomery Boycott in 1955. Acemoglu and Robinson explain that the civil rights movement finally broke the US South’s vicious circle of extractive institutions, which kept it much poorer than other parts of the country. The cycle broke because segregation’s Black victims started organizing for political change, while key national institutions took their side. Moreover, when Black workers started migrating to industrialized northern cities, southern planter elites started to lose their power. But cotton-picking machines also made these elites less reliant on cheap labor.
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The federal government played a crucial role in the civil rights movement because it had the power to force change on southern states. The Supreme Court chipped away at segregation, and federal law enforcement implemented these rulings. But this was only possible because it had wide support: civil rights protests won over most northern Democrats, dividing the party and leaving southern Democrats with little option besides integration. Finally, new federal civil rights laws passed in 1957, 1964, and 1965 forced southern institutions to change. They protected voting rights, blocked employment discrimination, and gave Black citizens far better economic opportunities. By building these inclusive institutions, the South has nearly caught up to the North economically.
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Acemoglu and Robinson look at “Rebirth in China.” The Chinese Communist Party took power in 1949. It immediately built extractive institutions, including a one-party political system and a nationalized economic system without private property rights. During the Great Leap Forward, Chairman Mao tried to industrialize China all at once. Tens of millions of people died in a horrific famine. Next, his regime persecuted and killed its enemies during the Cultural Revolution.
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After Mao’s death, different factions within the Communist Party fought for control. These included the left-wing Gang of Four and moderates like the vice-premier Deng Xiaoping, who opposed the Cultural Revolution and hoped to spur economic growth through inclusive institutions and international commerce. First, the acting premier Hua Guofeng sided with Deng and arrested the Gang of Four. Next, Deng gradually directed the government towards economic modernization projects and away from the Cultural Revolution. Finally, Deng ousted Hua and replaced most of the Party leadership.
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After securing political control, Deng’s government passed economic reforms. It gave incentives for productivity in agriculture and industry, and it embraced foreign investment. While China’s political institutions remained extractive, its economic ones became inclusive enough to generate explosive growth for several decades.
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Acemoglu and Robinson suggest that Botswana, the US South, and China (as well as the Glorious Revolution, French Revolution, and Meiji Restoration) prove “that history is not destiny.” It’s possible to escape the vicious circle of extractive institutions—it’s just very difficult. Apart from luck, it requires a broad political coalition to push for reform during a critical juncture.
