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In England there was a long history of absolutist rule that was deeply entrenched and required a revolution to remove it. In the United States and Australia, there was no such thing. Though Lord Baltimore in Maryland and John Macarthur in New South Wales might have aspired to such a role, they could not establish a strong enough grip on society for their plans to bear fruit. The inclusive institutions established in the United States and Australia meant that the Industrial Revolution spread quickly to these lands and they began to get rich. The path these countries took was followed by colonies such as Canada and New Zealand.

Explanation and Analysis:

Acemoglu and Robinson repeatedly emphasize that the countries that are rich today are the ones that managed to build inclusive economic institutions before, during, or soon after the Industrial Revolution. However, they also emphasize that not ...

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