Why are some nations rich?

Some countries, like Norway, are rich. Other countries, like Niger, are poor. Why? Why do some countries succeed whilst others fail? There are various possible theories. Some say that certain countries have geographical or resource advantages. Others claim that the real explanation is cultural – in some cultures, it’s said, there’s a stronger work ethic than in others. But the distinguished economist James Robinson, co-author of Why Nations Fail, proposes an alternative answer. He says it’s all to do with how a nation is governed and the strength of its institutions.

Presenter: David Edmonds
Producer: Ben Cooper

Image: Gold bars (Credit: Reuters)