The book examines the causes of national failure, ranging from corruption to a lack of critical institutions. It is an important read for understanding the root causes of many of the world’s problems.
Nations fail when their institutions and political systems cannot adapt to changing circumstances. For example, a country that relies on a single commodity for its exports may find itself struggling when that commodity becomes less valuable on global markets; a country that has been historically divided along ethnic or religious lines may experience difficulties when there is an influx of new immigrants; and so on.
Nations fail when they become too centralized and their elites become too corrupt. This can happen when there are significant gaps between rich and poor, or when elites in power use their positions for personal gain at the expense of the greater good.
Nations fail when they become too dependent on natural resources and fail to diversify their economies. This can happen when a country relies heavily on exports from a single sector—like oil—and then finds itself unable to compete with other nations that have more diverse economies (such as those in Europe).
