This chapter proposes that the cumulative findings arising from several explorations of the quality and effects of prison life might be garnered to propose a "failed state" theory of prison functioning and effects. A failed state is identified by a number of social, economic, and political and military indicators. The chapter outlines how appreciative inquiry has taken one from stories about what prisoners are most proud of to a two-directional theory of the failed-state prison. It describes the transformative potential and power in social science research methodology. The term generative theory emerged from a critical tradition: a group of scholars seeking to challenge meaning systems and distributions of power, rather than from an appreciative perspective. Agenerative theory aims to promote the advancement and well-being of the population under specific study. It provides a framework for the building of virtues, or the good society in which the individual can flourish.