Objective statement: The objective of this paper is to unfold the driving factors and their interactions in shaping the global trend and pattern of development using the concepts developed in WNF. Series of case specific evidences are drawn to analyze the arguments from a pair of countries – United States and Mexico. This comparative analysis between two countries basically focused on several key concepts as put forwarded in WNF, such as small differences and critical junctures, inclusive versus extractive political institutions, inclusive versus extractive economic institutions, and vicious circles versus virtuous circles.
Similarity and Contrast between Mexico and United States
Mexico is the neighbor of the United States, inhabited by 1007.4 million population. Area is about 761,600 sq. miles which is three times the size of Texas. Geographical terrain: Coastal lowlands, central high plateaus, and mountains up to 5,400 m. First proclaimed September 16, 1810; republic established 1824. Last revised Constitution produced in February 5, 1917. Mexico’s long term struggle to develop economically is fundamentally different from what the USA experienced. Several factors underlie the divergence between the two …show more content…
In 1818 there were 338 banks in operation in the United States, with total assets of $160 million and by the end of 1914 it was increased to approximately 27, 864 banks, with total assets of $27.3 billion. On the other hand, in 1910, the year in which the Mexican Revolution started, there were only forty-two banks in Mexico, and two of these controlled 60 percent of total banking assets which implies that there was practically no competition among Mexican banks. However, in the United States the banks were very competitive to serve the
Similarity and Contrast between Mexico and United States
Mexico is the neighbor of the United States, inhabited by 1007.4 million population. Area is about 761,600 sq. miles which is three times the size of Texas. Geographical terrain: Coastal lowlands, central high plateaus, and mountains up to 5,400 m. First proclaimed September 16, 1810; republic established 1824. Last revised Constitution produced in February 5, 1917. Mexico’s long term struggle to develop economically is fundamentally different from what the USA experienced. Several factors underlie the divergence between the two …show more content…
In 1818 there were 338 banks in operation in the United States, with total assets of $160 million and by the end of 1914 it was increased to approximately 27, 864 banks, with total assets of $27.3 billion. On the other hand, in 1910, the year in which the Mexican Revolution started, there were only forty-two banks in Mexico, and two of these controlled 60 percent of total banking assets which implies that there was practically no competition among Mexican banks. However, in the United States the banks were very competitive to serve the