They aren't as far ahead, at least not of the emerging countries that have enacted reforms. We're still as far ahead, or more so, over Zimbabwe, Malawi, N Korea and the like. But places like BRICs, Dubai (even after their slump), Colombia, Botswana, E Europe, SE Asia etc have seen the gap close significantly. People in those countries are now far better off, and have far more opportunities to make an honest living, than was the case 20 or even 10 years ago. Places like Slovenia, Singapore, Taiwan, Ireland etc have pretty much western G7-level living standards now.
The countries that made reasonable market reforms have started to reap the benefits. The ones that haven't, are not seeing positive change on the same level. But overall, in 2010 far more political leaders and electorates in the 3rd and 2nd world accept the idea that markets and rule of law bring wealth, whereas cronyism and hardcore socialism don't. Of course a few fight the tide, like Chavez, Morales, the Iranian regime, Mugabe, Cuba, N Korea etc. They will be consigned to the dustbin of history as a result. In China, even the communists embrace capitalism now.