Why Nations Fail - Chapter 5 Review

5454 words 22 pages
Levisalles Amaury Georg-August-Universität

Sommer Semester 2012 Göttingen


Seminar Paper

What Stalin, King Shyaam, the Neolithic Revolution, and the Maya city-states all had in common and how this explains why China's current economic growth cannot last.


Resume of the Key Statements of the Chapter Description of the Original Researches used By The Authors Opposition to the Theories of Acemoglu and Robinson Personal Point of View Bibliography

3 6 9 12 15


Resume of the Key Statements of the Chapter
In this chapter, D. Acemoglu and J.A. Robinson explain how growth under extractive
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Thanks to these abundant resources, the Natufians decided to settle down and later on, began farming. This change from a nomadic to a sedentary life had been made possible by previous institutional changes. Even though the reasons are still unknown, it has been proved that a hierarchy had been established


among the Natufians. Since their group had a leader, they were able to settle and keep on having institutional innovations that were needed to live in a sedentary way. The important fact about the Bushong and the Natufians is that even with a limited amount of institutional innovation, a certain amount of economic prosperity can be reached. However this development is not very high but more importantly, it is not sustainable. The fourth and last society studied by Acemoglu and Robinson is the Maya and their City-States that existed about a thousand years ago. The goal of the authors here is to show us that as Extractive Institutions rise, some people take power and are envied by others. This situation can lead to the replacement of a leader by another but also to the end of a civilization, as it has been the case for the Maya. As the Natufians transitioned to Agriculture, so did the Maya. This agricultural emergence was made possible by the creation of Extractive Institutions. The Maya were in fact an extremely well hierarchically developed society. But since it was controlled by extractive institutions, it meant that a few people would be


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