A coutry can do nothing and still remain at top for ever.
For simplification of argument let's say a developed conutry decides that its citizens need not work at all, except to be at (probably) management position. Work will be done by inviting all the third world laborers. This will work.
Now a citizen needs food, cloth, home, luxury etc. To cater one citizen of country A, say 5 third world laborers are working in that country. Also assume, every laborer gets decent salary (so that best of the people at third world coutries vie to come to country A), but never a citizenship(understandable). A typical income-tax on country A is 33%. Say in the perfect scenario, this tax is routed as social-security for its citizen. So 5 laborers will provide the citizen not only only as good as 100% of their salary (which should be less than 100% because earning citizen will also have to pay some tax), but also 66% extra, besides producing all that citizen needs.
So country A:
1) Gets everything done for its citizen who need not do anything for living
2) Gets an extra income in its treasury, equal to 66% of the one person's salary, much more than what if everyone of its citizen would have worked and paid taxes.
Say if all the people are from same 3rd world country B, then B gets:
1) Income not by tax (because single taxation allows tax at location i.e to country A only) but by percolation/spill effects i.e if these laborers return home and spend on things at home country.
2) Still aspire to become next best i.e number 2 position.
3) It will still be a lucrative option, to monopolize the service industry otherwise there are others to offer services
The basic assumption is that following is ruled out:
1) Idle people at country A lose competency(with technological advances etc) to stay at top. Country B becomes assertive and after becoming number 2, forcefully acquires the number 1 position.
Now to calculate odds of the above risk.....
Say all salaries are equal. Per citizen A has more than 66% of salary (assuming the citizen consumes the whole of their 100%) that it needs to plough back to retain its competency (R&D, Buy-outs, creating rivals for B etc). Wait, even 100% salary that A's citizen is earning is after his requirements are fulfilled by the work of 5 laborers(i.e for free). Per citizen B has less than 66% salaries (assuming they use whole of their after-tax salary for home-country-economy).
Chinese must surely have thought about this.
A fork in the road for Tesla
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