During the last part of the course, we have read two chapters from the book titled: Why nations fail. On Chapter 2 – Theories that don’t work— the authors present three theories of development that have been traditionally used to explain the gap between developed and developing countries in terms of Income and wealth inequality. The authors explain that these three theories are useless to explain this gap.
Please explain what is the ONE theory or explanation that can explain this difference and make sure you explain it from the point of view of the (1) four capitalist systems analyzed in chapter 4 of Good and Bad Capitalism, and (2) how it can be explained based on chapter 6 of Good and Bad capitalism when it comes to helping developing countries to break from the vicious cycle of poverty and dependency.
I wish you the very best of luck in your academic, personal and professional lives.