The Rise and Decline of Nations: Economic Growth, Stagflation, and Social Rigidities (Paperback)

by Mancur Olson (Author) "Many have been puzzled by the mysterious decline or collapse of great empires or civilizations and by the remarkable rise to wealth, power, or cultural..." (more)
Key Phrases: flexprice sector, social selective incentives, perverse policy syndrome, United States, World War, Great Britain (more...)

Product Details

• Paperback: 276 pages
• Publisher: Yale University Press (September 10, 1984)
• Language: English
• ISBN-10: 0300030797
• ISBN-13: 978-0300030792
• Product Dimensions: 8.1 x 5.5 x 0.8 inches
• Shipping Weight: 10.4 ounces (View shipping rates and policies)
• Average Customer Review: 4.7 out of 5 stars See all reviews (15 customer reviews)
• Amazon.com Sales Rank: #143,281 in Books (See Bestsellers in Books)

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Customer Reviews

Most Helpful Customer Reviews

67 of 68 people found the following review helpful:

5.0 out of 5 stars An excellent study with plenty of applications., January 5, 1999

By	David "David" (Atlanta, GA USA) - See all my reviews

Olson does a stellar job "proving" his theory using accepted scientific standards. His main thesis is that stable societies, over time, will be stifled by a steady growth of groups each committed to obtaining a disproportionate amount of society's goods. This theory, composed of only nine implications, is parsimonious with wide explanatory power. It helps to explain the post-war growth of coutries such as Japan and Germany, while providing a reason why the growth rates of the United States, and especially Great Britain, have been stagnated. Perhaps the most interesting chapter of the book is the last, in which Olson merges both Keynesianism and monetarism to form a new theory of macroeconomics. By using his theory, he is able to better explain involuntary unemployment than either of the more popular schools of macroeconomic theory. I was amazed at how many phenomena, such as slavery and the Indian caste system, can be at least partially explained by Olson's theory. Anyone seriously interested in knowing the way the world works will want to give this theory substantial consideration.

13 of 14 people found the following review helpful:

4.0 out of 5 stars The Paradox of Wealth, April 19, 2008

By	D. W. MacKenzie (New London CT) - See all my reviews (REAL NAME)

Most people recognize that there is something wrong about special interest groups. While most people think of special interest groups in terms of fairness, Olson examines efficiency issues. Special interest groups, or distributional coalitions, hinder economic growth in industrialized nations. Special interest groups slow the pace of change in industry. We will reorganize production and adopt new technologies more slowly as more coalitions form for the purpose of transferring wealth.

Distributional coalitions are mainly a problem of wealthy nations. Paradoxically, poor nations can experience strong growth due to the fact that they have little to redistribute. Poor nations can therefore develop rapidly. The examples of postwar Japan and Germany fit Olson's thesis well. Japan and West Germany were devastated and left poor by the War, but developed rapidly afterwards. As Japan and Germany became affluent, distributional coalitions formed to retard further economic development.

Olson does not explain the stagnation of so called third world nations. Why is it that Japan and Germany were able to "take advantage" of their postwar poverty, while many other nations remain "too poor" to support extensive distributional coalitions? Distributional coalitions actually abound in poor nations. The Rise and Decline of Nations does not explain all of history, but this is definitely part of the formula. Its examples are a little dated, but there is some great stuff here.

13 of 14 people found the following review helpful:

5.0 out of 5 stars Elegant Theory Elegantly Presented, August 9, 2001

By	Sam Maverick (Washington, DC, USA) - See all my reviews

Professor Olson describes a wide range of social/economic structures and processes (unions, big government, high and rising taxes, regulation, monopolies, etc.) that characterize most economies but more so the aging economies of Western Europe (This book was written before the unification of eastern and western Europe). He then proceeds to show us what these all have in common: They each, together and with time, contribute in increasingly slowing down and stifling a nation's economy. Reading this book leads one to see that the USA is also involved in a similar progression, albeit at an earlier stage. I first read this book as an Economics student about 15 years ago. I enjoyed it tremendously. I also learned from it. His clear and powerful conveyance of concepts have kept the ideas with me. He explains the economics simply yet completely. One need not have studied Economics to follow him. I highly recommend this book. Even though the author's forescast is gloomy, his book is brilliant. Sherry S.