Earlier quoted context omitted.
MIT economists Acemoglu and Robinson wrote a book "Why Nations Fail" that analyzes why countries at similar starting points can have extremely divergent paths in terms of economic development. One example is South and North Korea. Their conclusion is that some countries have established extractive institutions, while others inclusive . The extractive ones exclude the population from the decision making process and se…
What does it say about the United States?
In more recent times the authors compare two towns across the US-Mexico border: Nogales, AZ to to Nogales, Mexico. Even thought the language and ethnicity is mostly the same (95% Hispanic), with same climate and what not - Nogales in the United States has three times the GDP per capita of Nogales, Sonora. The difference is more inclusive economic and political institutions in the United States - while Mexico has suffered under one party rule for decades.