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  • Essay / Developing countries and landlocked developing countries

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