If you're talking about rule of law here, then perhaps we're not talking about economic institutions exclusively, but about political, economic, and political economic institutions and how they interact.
It is true that in Mexico there is little rule of law. But again, the reason this is so is intricately related to Mexico's history (civil war etc) and culture, Mexico's development in relation to the US (industry, neoliberal imposition, CIA shenanigans, etc), Mexico's role in American drug market and consumption.
So sure, if Mexican institutions weren't corrupt, they would be much better, but the reason they can't improve significantly is not mentioned. Marxism gives you the tools to analyze things in relation, whereas here you are looking at things in isolation. It's good to have an understanding of things in isolation, but you also need to re-integrate that understanding to the context. Which is what I feel is missing from the book's tools for analysis.
Apply the analysis of the book to China. China is doing an amazing job. How did China build and maintain good institutions? Why are China's institutions, despite corruption being more common, have a higher benefit than american institutions? How come America's infrastructure is crumbling while Mexico is improving its infrastructure?
What do you think?