It is widely known that industrial revolution began in England. In their book Why Nations Fail (2012), Acemoglu and Robinson observe that there were particular reasons that were paramount in making industrial revolution start in England. They predominantly argue that it was inclusive political and economic institutions that were pivotal in the industrial revolution in England. In other words, it was political and economic transformations that caused England to begin experiencing prosperity (Acemoglu and Robinson 4). They note that political reforms brought forth more political rights which the people used expand their economic activities. They state that “the result was a fundamentally different political and economic trajectory, culminating in the Industrial Revolution” (Acemoglu and Robinson 4). From what the argument postulated by the two authors, economic institutions is important because they determine the prevailing economic incentives such as getting educated, saving, investing and inventing new technologies among others (Acemoglu and Robinson 42). Consequentially, political institutions dictate the state of a nation’s economic institutions, and that is why political inclusiveness is central.
From the two authors’ emphasis in institutional reforms that make them inclusive, this would be the precipice of industrialization in developing countries. These countries require solid institutional framework that would transform individual talent into positive force (Acemoglu and Robinson 43). Drawing from their examples of economic incentives in a nation such as less barriers, efficient labour markets and fairly competitive markets, such incentives would contribute to the industrialization of the developing countries. They would also recommend developing countries to have political institutions that ensure stability and continuity (Acemoglu and Robinson 43). Generally, noting how the two authors criticize dictatorship and extractives that contains decision making to the society’s elite, they would recommend for developing nations which have such political culture to reform. This would thus create a suitable environment for industrialization.
Acemoglu, Daron, and James A Robinson. Why Nations Fail. Profile Books, 2012.