Cover of Why Nations Fail by Daron Acemoglu, James A. Robinson - Business and Economics Book

From "Why Nations Fail"

Author: Daron Acemoglu, James A. Robinson
Publisher: Profile Books
Year: 2012
Category: Business & Economics

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Chapter 14: Breaking the Mold
Key Insight 3 from this chapter

The Transformation of the U.S. South Through Civil Rights

Key Insight

Following the Civil War, southern landowning elites in the U.S. South re-created extractive economic and political institutions, maintaining economic disadvantage similar to pre-war conditions despite the abolition of slavery. These 'Jim Crow' institutions, akin to South African Apartheid, were designed to secure cheap labor. A critical juncture for change began in the 1940s, as black Americans, who bore the brunt of discrimination, became better organized. On December 1, 1955, Rosa Parks, secretary of the Montgomery NAACP, was arrested for refusing to move from a 'white section' on a bus, receiving a $10 fine plus $4 court fees. This sparked the Montgomery Bus Boycott (December 3, 1955 – December 20, 1956), led by Martin Luther King, Jr., which successfully challenged segregation and culminated in a U.S. Supreme Court ruling declaring segregated buses unconstitutional.

The transformation was fueled by an unusual coalition between southern blacks and inclusive federal institutions. Economic conditions also shifted: significant mass outmigration of blacks (averaging 100000 people per year in the 1940s and 1950s) and agricultural mechanization (by 1960, almost half of cotton production in key states was mechanized) lessened the elites' dependence on cheap labor, reducing their incentive to vigorously maintain extractive institutions. Federal intervention, starting in 1944 with the Supreme Court ruling against 'white primary' elections, systematically dismantled these institutions. Further landmark rulings included Brown v. Board of Education in 1954, declaring school segregation unconstitutional, and Baker v. Carr in 1962, introducing 'one-person, one-vote' to end legislative malapportionment that overrepresented rural planter elites.

Despite strong resistance, federal authority prevailed. For instance, the admission of James Meredith, a black air force veteran, to the University of Mississippi in 1962 was met with orchestrated opposition from state governor Ross Barnett and white supremacists, leading to a riot that required 20000 federal troops and 11000 National Guardsmen to restore order. Federal legislation was pivotal: the Civil Rights Act of 1957, despite Senator Strom Thurmond's 24-hour-18-minute filibuster, was followed by the comprehensive Civil Rights Act of 1964 and the Voting Rights Act of 1965, which outlawed segregationist practices and methods like literacy tests and poll taxes. This led to a dramatic increase in black voter registration (e.g., Mississippi's eligible black voters rose from 5% in 1960 to 50% in 1970). Economic discrimination declined significantly, with black employment in southern textile mills rising from 5% in 1960 to 25% by 1990, improving educational opportunities and labor market competitiveness. The South's per capita income, which was about 50% of the U.S. average in 1940, had largely caught up by 1990, demonstrating the link between inclusive institutions and economic growth.

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