In terms of skills and education, Israel probably has the highest level of human capital per person in the whole world. Yet its per capita output is mediocre in the middle of the developed-country pack. Why is that? Because Israel has been slow to adopt capitalism.
How do I know that? Because Bibi Netanyahu told me that in an interview in Dallas, several years before he became prime minister. Once he became Israels leader, he was been able to do something about it.