Why Nations Fail: The Origins of Power, Prosperity, and Poverty

emphasized in chapter 7 , is what sets apart the Glorious Revolution from the overthrow of one elite by another. In the case of the Glorious Revolution, the roots of pluralism were in the overthrow of James II by a political revolution led by a broad coalition consisting of merchants, industrialists, the gentry, and even many members of the English aristocracy not allied with the Crown. As we have seen, the Glorious Revolution was facilitated by the prior mobilization and empowerment of a broad coalition, and more important, it in turn led to the further empowerment of an evenbroader segment of society than what came before—even though clearly this segment was much less broad than the entire society, and England would remain far from a true democracy for more than another two hundred years. The factors leading to the emergence of inclusive institutions in the North American colonies were also similar, as we saw in the first chapter. Once again, the path starting in Virginia, Carolina, Maryland, and Massachusetts and leading up to the Declaration of Independence and to the consolidation of inclusive political institutions in the United States was one of empowerment for increasingly broader segments in society.
    The French Revolution, too, is an example of empowerment of a broader segment of society, which rose up against the
ancien régime
in France and managed to pave the way for a more pluralistic political system. But the French Revolution, especially the interlude of the Terror under Robespierre, a repressive and murderous regime, also illustrates how the process of empowerment is not without its pitfalls. Ultimately, however, Robespierre and his Jacobin cadres were cast aside, and the most important inheritance from the French Revolution became not the guillotine but the far-ranging reforms that the revolution implemented in France and other parts of Europe.
    There are many parallels between these historical processes of empowerment and what took place in Brazil starting in the 1970s. Though one root of the Workers’ Party is the trade union movement, right from its early days, leaders such as Lula, along with the many intellectuals and opposition politicians who lent their support to the party, sought to make it into a broad coalition. These impulses began to fuse with local social movements all over the country, as the party took over local governments, encouraging civic participation and causing a sort of revolution in governance throughout the country. In Brazil, in contrast with England in the seventeenth century or France at the turn of the eighteenth century, there was no radical revolution igniting the process of transforming political institutions at one fell swoop. But the process of empowerment that started in the factories of São Bernardo was effective in part because it translated into fundamental political change at the national level—for example, the transitioning out of military rule to democracy. More important,empowerment at the grass-roots level in Brazil ensured that the transition to democracy corresponded to a move toward inclusive political institutions, and thus was a key factor in the emergence of a government committed to the provision of public services, educational expansion, and a truly level playing field. As we have seen, democracy is no guarantee that there will be pluralism. The contrast of the development of pluralistic institutions in Brazil to the Venezuelan experience is telling in this context. Venezuela also transitioned to democracy after 1958, but this happened without empowerment at the grassroots level and did not create a pluralistic distribution of political power. Instead, corrupt politics, patronage networks, and conflict persisted in Venezuela, and in part as a result, when voters went to the polls, they were even willing to support potential despots such as Hugo Chávez, most likely because they thought he alone could stand up to the established elites of Venezuela. In consequence, Venezuela still languishes under extractive institutions, while Brazil broke the mold.
    W HAT CAN BE DONE to kick-start or perhaps just facilitate the process of empowerment and thus the development of inclusive political institutions? The honest answer of course is that there is no recipe for building such institutions. Naturally there are some obvious factors that would make the process of empowerment more likely to get off the ground. These would include the presence of some