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What changes happened in the histories of Europe and China to create two economies that developed so differently? How did different forms of local cooperatio influence state development, rule of law, and economic progress?s? Guido Tabellini is a professor of Political Economics at the University of Bocconi in Milan, Italy. He is also the author of several books, most recently co-authoring Two Paths to Prosperity: Culture and Institutions in Europe and China, 1000–2000. Greg and Guido discuss the historical divergence in prosperity between Europe and China, exploring when and why it began, and whether it arose from cultural or institutional phenomena. Guido also emphasizesthe contrasting roles of corporations and clans in both regions, the impact of state capacity, and the lasting effects of these differences on modern economic and political landscapes. Their conversation touches on the historical process of cooperation across regions and its implications for modern development economics. unSILOed Podcast is produced by University FM.