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Why Nations Fail, Revisited: America’s Institutional Drift & China’s Cleantech Rise - CleanTechnica

Why Nations Fail, Revisited: America’s Institutional Drift & China’s Cleantech Rise - CleanTechnica
Source: cleantechnica
Author: @cleantechnica
Published: 9/10/2025

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The article revisits the 2012 book "Why Nations Fail" by Daron Acemoglu and James Robinson, which argued that inclusive political and economic institutions are essential for sustained prosperity. The authors originally positioned the United States as a model of such institutions, characterized by pluralism, rule of law, and a culture that embraces creative destruction, while portraying China as limited by extractive political institutions that would eventually hinder its long-term growth. However, the article notes that by 2025, this forecast appears inverted: America is experiencing institutional erosion, with political attacks on constitutional norms, civil service, universities, and scientific research, alongside protectionist economic policies that resist innovation and creative destruction. In contrast, China has aggressively invested in education and technology, producing a vast number of STEM graduates and maintaining strong support for research and development. This investment has enabled China to surge ahead in fields like artificial intelligence and biotechnology, challenging the earlier assumptions that its political system would stifle innovation. The article suggests that

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energycleantecheconomic-institutionsinnovationtechnology-deploymenteconomic-prosperitypolitical-institutions