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EconTalk

Daron Acemoglu on Why Nations Fail

Mar 19, 2012
56:40

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Quick takeaways

  • The Black Death acted as a critical juncture, shaping the divergent paths of Europe by creating a labor shortage, increasing the power of workers and resulting in improved conditions and rights in some regions while labor obligations became more burdensome in others.
  • The success of Botswana and the challenges faced by Argentina highlight the importance of inclusive institutions in promoting sustained development, with Botswana preserving pre-colonial institutions, pluralism, and inclusive political institutions, while Argentina's reliance on extractive institutions and resource wealth led to instability and unequal distribution.

Deep dives

The Black Death and Institutions

The podcast discusses how the Black Death impacted Europe and led to changes in economic and political institutions. The high death toll created a labor shortage, increasing the power of workers and resulting in improved conditions and rights. This contrasted with Eastern Europe where labor obligations became even more burdensome. The Black Death acted as a critical juncture, shaping the divergent paths of these regions.

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