In relative terms, places that were wealthier during the colonization period are now among the poorest. The presence of a greater number of European settlers in a region increased the likelihood of establishing economic systems that favored long-term growth. This phenomenon can be observed in cities like Nogales, Sonora, which has become a clear example of this situation.
Free elections allow residents to replace politicians they are dissatisfied with; however, political corruption remains a difficult obstacle to overcome, even in democratic countries. In Nogales, Sonora, the population lives in unfavorable economic conditions, and the political system limits their ability to influence local legislation. This division is not unique to this city but represents a pattern rooted since colonial times.
The current inequality in the prosperity of different regions is largely due to the political and economic systems introduced by European colonizers since the 16th century. While in some places, like Nogales, Arizona, residents enjoy relative prosperity, on the Mexican side of the border, the situation is noticeably different. The security of property rights and investment opportunities are greater north of the fence.
The existence of strong institutions has proven to be key in promoting economic prosperity, as evidenced by the disparity between the two Nogales cities. While the American side maintains strong institutions that foster growth, south of the border, the lack of these structures has contributed to poverty and instability.
Researchers Daron Acemoglu, Simon Johnson, and James A. Robinson have established a direct relationship between political and economic institutions and the level of prosperity of a society. This analysis sheds light on the differences present in regions like Nogales and highlights the importance of having strong institutions for sustainable long-term development.
