The idea of institutional sclerosis was first applied by Olson to provide an explanation for the divergence in growth rates of post World War II winners and losers. This can be connected in more specifically understanding the rise and decline of nations. During these times, countries like Germany and Japan suffered great loses especially in terms of their economy. However, not many years later the economies in both Germany and Japan were described as economic miracles. In looking at these two cases Olson derived that politically weak nations such as Germany and Japan had the ability to enjoy prosperity through rapid growth, whereas a country like Great Britain was struggling with increase of growth. In his research on economic growth he therefore empirically demonstrated that economic growth can be measured through the advancement of technology, accumulation of knowledge and capital .. Thus, institutional sclerosis offers a description to understand the measures that hinder economic growth. Implication Societies or individual institutions that fail to adapt and change at a sufficient pace are sometimes described as displaying institutional sclerosis. It is associated with continuity and stability, and may hamper economic growth. The concept implies that economic growth can be measured and linked to the number of interest groups within a country. This means that politically stable economies allow room for more interest groups. However, at the same time the high number of interest groups has a negative effect on the growth rate, as the country is less likely to adapt to structural shifts. National level The American political economist Mancur Olson, in his 1984 book, "The Rise and Decline of Nations", first offered "institutional sclerosis" as a partial explanation for the divergent growth rates experienced between the winners (with relatively low post-war growth rates) and losers (with relatively high post-war growth rates) of World War II. In liberal democracies experiencing continuity and stability, interest groups form over time and grow to exact rents, becoming vested. The accumulation of vested interests and rent-seekers ultimately slows the ability of a government to reform, adapt, and secure perfectly competitive markets thanks to a related phenomenon studied by Olson: the collective action problem. This sclerosis saps an economy's dynamism and lowers growth rates. In liberal democracies with young institutions, by contrast, competition remains perfect and natural economic dynamism and creative destruction ensue, generating high growth. Institutional level Institutional sclerosis may also be applied to an institution