A study of the transformation from the violent kinship of clan society to the prosperous politics of the modern state. In his experiences around the globe—among the miners of Kitwe, Zambia, the guerrilla fighters in Sudan, and the diplomats in Bogota—Robert Bates has studied firsthand the processes of modern political and economic development. In this concise volume, he shows us how, as a culture moves from dispersed agrarian clans to the dense modern metropolis, the nature of its capital evolves, from resources of kinship and family to more material investments. But this tenuous transition can only thrive within the favorable conditions ensured by the institutions of a peaceful modern state. Inspired by his work among diverse cultures, Bates looks back over the history of human civilization and illuminates how the often-violent clash within agrarian clans has developed into the coercive systems of institutions that compose Western statehood. Ultimately, Bates hopes to apply this understanding to building states that use power effectively, and that harness ethnic diversity not for violence and political power but for greater prosperity. 3 maps.