Note that this is a review by the (economically conservative) Economist.
I haven't read Why Nations Fail, but I do read their blog[1] and my interpretation of their theories is much less absolute than the Economist's is - or rather, I think the emphasis is more on the problems of Extractive institutions (which may well be state institutions, but also could be private institutions or hybrids or the two).
For example, even in the review the Economist highlights the example of Botswana which is a good example of state power as a good.
They actually believe in a certain size of government. For example for some developing countries they often suggest increasing tax revenues to build a bigger state.
I haven't read Why Nations Fail, but I do read their blog[1] and my interpretation of their theories is much less absolute than the Economist's is - or rather, I think the emphasis is more on the problems of Extractive institutions (which may well be state institutions, but also could be private institutions or hybrids or the two).
For example, even in the review the Economist highlights the example of Botswana which is a good example of state power as a good.
Another example: the (book) authors are very positive about the potential impact of Jim Yong Kim on the World Bank: http://whynationsfail.com/blog/2012/3/27/mr-kim-vs-the-world...
[1] http://whynationsfail.com/