> Compare the impact the US system of government has had with the impact the Icelandic form cited in this article had. The indigenous populations of North America and Australia have been around for thousands of years as well, with their "chieftain" systems of government, and similarly they just stagnated.

You really ought to check out Guns, Germs, and Steel by Jared Diamond. http://en.wikipedia.org/wiki/Guns,_Germs,_and_Steel#The_theo...

Specifically, he would question your use of the word stagnate.