the twentieth century ran a series of experiments, imposing quite different institutions on two sets of Germans {in West and East}, two sets of Koreans {in North and South} and two sets of Chinese {inside and outside the People's Republic}. The results were very striking and the lesson crystal clear. If you take the same people, with more or less the same culture, and impose communist institutions on one group and capitalist institutions on another, almost immediately there will be a divergence in the way they behave. Many
The twentieth century witnessed stark experiments that placed distinct institutional frameworks on two groups of Germans, two sets of Koreans, and two factions of Chinese. These experiments compared the outcomes of communities under communist versus capitalist systems. The findings from these contrasts were remarkably pronounced. When similar populations were subjected to differing governance models, their behaviors diverged significantly and quickly.
This divergence highlighted the profound impact of institutional structures on societies with similar cultural backgrounds. The lesson drawn from these historical experiments is clear: the nature of governing institutions shapes the social, economic, and cultural behaviors of a population, leading to distinct paths of development in comparative contexts.
