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Why have only 25 countries built stable, open societies, while the rest still live in cycles of poverty and violence? Nobel laureate Douglas North and his co-authors offer an answer that shatters conventional wisdom about how states develop. Analyzing ten thousand years of history, they have discovered a pattern. A nation’s success is determined not by its resources but by its ability to create impersonal institutions that limit violence and prevent the concentration of power in the hands of elites.
This work is the foundation of modern political economy and the conceptual framework without which the analysis of reform or corruption will remain superficial. A must-read for statesmen, economists, historians, political scientists, and anyone who seeks to understand the logic of social change.