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This paper investigates the comparative implication of meritocracy versus heredity in historical political development, against the backdrop of a worldwide convergence in political stability and divergence in institutions. During the medieval time, many regions of the world achieved political stability, but they did so through dramatically different routes. Western Europe developed feudalism and later parliamentary representation on the basis of a power balance between the landed aristocracy and the crown, whereas other regions, such as China, consolidated absolutism based on institutions with varying degrees of meritocracy. This paper provides empirical evidence to examine the emergence of meritocracy in historical states, and proposes a formal theory to understand the relationship between meritocratic institutions and the monarchy-aristocracy power balance, as well as its implications for political stability and long-run political development.