An article in the Atlantic that was posted here "The Politically Incorrect Guide to Ending Poverty" actually talks about this idea from the lens of international development. It dwells on the analogy with Hong Kong, and some city states in Mediaval Europe quite extensively. It's a thought provoking read, you should check it out here:

http://www.theatlantic.com/magazine/print/2010/07/the-politi...

HN discussion here:

http://news.ycombinator.com/item?id=1426429