Topic > Developing countries and landlocked developing countries

Acemoglu and Robinson use three pairs of countries that are very close to each other, but have a huge difference in level of development: Mexico and the United States of America; North and South Korea; Zimbabwe and Botswana. In the first couple of examples, Mexico was colonized with a system of slavery and extraction, where the Spanish used existing slavery systems in Mexico to extract valuable resources like gold and silver in Spain, leaving behind a government for the elites , an absence of political rights for the general public, and will ultimately lead to political unrest and several dictatorships in Mexico, thus to underdevelopment. North of the Mexican border, North America was colonized by the English with a system that emphasized incentives – land in exchange for labor – which eventually led to a democratic constitution and political stability for hundreds of years, and opportunities for the people to get rich. Regarding North and South Korea, Acemoglu and Robinson argue that the ban on private property and markets in North Korea discouraged productivity and innovations, while a free market in South Korea led to investment and to economic growth. In the case of Zimbabwe and Botswana, Zimbabwean institutions are extractive. The authors use the 2000 Zimbabwe National Lottery, in which Zimbabwean President Robert Mugabe won the lottery, as an example to demonstrate the corruption of Zimbabwe's institutions. In contrast, the Republic of Botswana, a landlocked African country bordering Zimbabwe, has maintained inclusive institutions that existed before colonialism, and through the nationalization of the country's diamond mining industry, the Botswana government has built a developed country