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OPINION
On July 4, 1776, the United States of America adopted the Declaration of Independence. A week from today, it will mark 250 years of that historic event. It will be America250. It has been a long and remarkable journey. The anniversary comes at a time when global attention is focused on the US. The world is watching the FIFA World Cup, co-hosted by the US, Canada and Mexico, while also closely following America’s role in the Middle East and other international affairs.
In 250 years, the United States has evolved from a fragile collection of 13 British colonies along the Atlantic coast into one of the world’s most powerful economic and political nations. In 1776, it had neither the global influence nor the military, economic and diplomatic power it wields today. But the decision by the colonies to break away from the United Kingdom of Great Britain set the country on a path that would transform both itself and the wider world.
The question is: Why has the US succeeded? And can other nations emulate its experience?
Two scholars, Daron Acemoglu and James A. Robinson, offer some answers in their book Why Nations Fail: The Origins of Power, Prosperity and Poverty. The book begins with a striking comparison between the US and Mexico. The city of Nogales sits on the border between the two countries and is divided by a fence. To the north lies Nogales, Arizona; to the south is Nogales, Sonora. The people share similar ancestry, culture and geography, yet their living conditions differ markedly. In Arizona, schools function, public services are available and incomes are higher. Across the border in Sonora, opportunities are fewer and living standards lower.
The authors ask: “How could the two halves of what is essentially the same city be so different?” The same question can be asked about former colonies around the world. Why did the US emerge as a prosperous democracy with global influence while others continue to struggle, despite possessing abundant natural resources and similar colonial histories?
According to Acemoglu and Robinson, the answer lies in the quality of political and economic institutions. Nations prosper when they develop inclusive institutions that distribute power broadly, protect property rights, uphold the rule of law, encourage innovation and create opportunities for citizens to participate in economic life. Nations fail when elites establish extractive institutions that concentrate power and wealth, suppress competition and limit economic participation.
Viewed through this lens, the America250 story is fundamentally about institutions. The US succeeded not simply because of its size, geography or natural resources, but because political power gradually became more widely distributed, allowing citizens to innovate, invest and participate in governance.
The book also challenges a common assumption, particularly in Africa, that natural resources alone are the key to prosperity. Many resource-rich countries continue to struggle economically, while others with fewer resources thrive. The difference, the authors argue, lies in whether institutions enable people to transform resources into wealth, innovation and opportunity.
As the US marks 250 years of independence, the question is not only how it became prosperous but also how it can preserve the institutional foundations that made that prosperity possible. When the US declared independence in 1776, it was not a great power but fragile. With a population of only about 2.5 million people living in 13 colonies, the new nation lacked a strong army, a national constitution and the resources of the British Empire. Its economy was overwhelmingly agricultural, and it was fighting for survival in a war whose outcome was far from certain.
But the US founders planted powerful ideas, such as representative government, individual liberty and the rule of law that would shape the nation’s future. In 1787, the adoption of the US Constitution provided the institutional framework for governance and economic development. Today, it remains the oldest written national constitution still in uninterrupted use.
From independence, the US underwent a remarkable transformation. Its population grew from 2.5 million to more than 340 million people. The original 13 colonies expanded into a union of 50 states stretching from the Atlantic to the Pacific.
The country evolved from an agrarian society into the world’s largest economy, driven by industrialisation, technological innovation, entrepreneurship and global trade. From a nation struggling to secure its existence, it emerged as a global superpower with immense economic, military and diplomatic influence. What began as a modest experiment in self-government became one of the most influential nations in history, shaping global politics, technology, culture and ideas.
The story of America’s first 250 years is, therefore, not simply one of military victories, economic growth or technological innovation. It is also a story of institutions.
As Acemoglu and Robinson argue in Why Nations Fail, nations prosper when they develop inclusive political and economic institutions that encourage participation, innovation and the rule of law.
The US at age 64 in 1840, where Uganda is today in terms of years since independence, illustrates this point. By then, the country had grown to about 17 million people and was expanding westward. Democracy was broadening, entrepreneurship was flourishing and infrastructure, such as canals, roads, railways and steamboats was transforming commerce.
But America remained a nation of profound contradictions. While freedoms and economic opportunities expanded for many, nearly 2.5 million enslaved Africans and African Americans remained in bondage. The nation was strengthening institutions that protected property rights and encouraged political participation, but millions were excluded from those very freedoms.
“Inclusive economic institutions foster economic activity, productivity growth, and economic prosperity,” Acemoglu and Robinson write. The American experience over the past 250 years offers a powerful illustration of that argument. From the Constitution and the rule of law to political competition and the protection of property rights, the US built institutions that enabled innovation, investment and social mobility on an unprecedented scale.
From the perspective of Why Nations Fail, the significance of 1776 was not that the US was rich or powerful; it was neither. Rather, it marked the beginning of a political experiment built on representative government, limits on concentrated power and the protection of individual rights. The US founders created conditions that evolved into the inclusive institutions that Acemoglu and Robinson identify as the foundation of long-term prosperity.
As America celebrates 250 years of independence, its journey offers a lesson that extends far beyond its borders: Nations rise not simply because of the resources they possess, but because of the institutions they build and sustain.
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