Economics and Optimism Around the World

According to research cited by the Wall Street Journal, more than three-quarters of American adults felt their children would be worse off than they are, a sobering testament to the economic malaise and political dysfunction that have been entrenched (if not worsened) these past several years. Who could blame anyone for being so cynical?

But how do other nations compare? Which societies have been brought low by the global recession and the subsequent stagnation, and which ones have managed to remain optimistic? Earlier this month, eminent pollster Pew issued a report that explored these attitudes across dozens of rich and developing countries.

As an article in The Atlantic observed, the findings show a strong connection between economic development, attitudes towards certain economic concepts (like the free market), and thoughts about the future.

Perhaps not surprisingly, Germany, South Korea, and the United States are the advanced countries with the most robust support for the market economy. Among emerging markets, Jordan and Argentina are most opposed to the free market. And among developing economies, which are the poorest in Pew’s sample, the market economy is least popular in Uganda and El Salvador, while Bangladesh, Ghana, and Nicaragua (another country with a socialist government) report the strongest support.In general, the world is inclined to favor the free market (66 percent of all those surveyed by Pew do), but its greatest supporters are in the poorest countries (80 percent in Bangladesh, 75 percent in Ghana, and 74 percent in Kenya). Among emerging economies, 76 percent of Chinese respondents think people do better in a market economy, and that number remains high in India (72 percent), socialist Venezuela (67 percent), and Brazil (60 percent).

Here is a visual representation of the results:

For comparison, here is how respondents from these countries feel about the future of their countries.

Note the strong optimism among developing countries, especially those in Asia and Sub-Saharan Africa. As The Atlantic notes:

Asia […] is the most optimistic region when it comes to how people view the economic prospects of their children. Europeans and Americans, meanwhile, are quite grim about the future. Pessimism abounds in France, where 86 percent of those surveyed believe that children will be worse off financially than their parents, and the numbers of those who worry about the outlook for younger generations is also high in Japan (79 percent) and Italy (67 percent). In contrast, the expectation that future generations will be better off is widespread in Vietnam (94 percent), China (85 percent), Chile (77 percent), and Bangladesh (71 percent).

Indeed, the following chart shows just much more optimistic Asians are than the rest of the world (although large minorities still remain pessimistic):

So not only does support for the free market correlate with greater optimism, but this pattern applies overwhelmingly to poorer countries. For all their positive views of this economic approach, the average rich-world resident remains skeptical about the future and perhaps doubtful that their vaunted free market is really in place as they would prefer.

I personally suspect that this may have something to do with the rise in inequality, which has been especially well publicized in the rich world, despite being an otherwise global phenomenon. With companies reaping record profits but wages and employment remaining stagnant, even the most enthusiastically pro-business societies like the U.S. cannot help but feel cynical, whatever their support for the principles of the free market.

Indeed, it appears that economic growth was more of a determinant than current economic conditions. Generally, poorer countries are growing faster than richer ones, so even if times are bad now, most residents in the developing world have much to look forward to, especially if they are rising from a much lower base.

So it makes sense why there appears to be a mismatch in optimism between developing and developed countries. Emerging economies probably feel that their support of the free market is being vindicated by growing prosperity, while richer but stagnant states are less optimistic even if they hold true to the ideal of the free market.

Of course, there is the issue of semantics: what exactly is the “free market” in the context of this survey? Like most academic concepts, it is difficult to neatly define, let alone implement in the real world. Moreover, different societies no doubt have different interpretations of it. I imagine Pew accounted for that to some degree, but I am not sure. Just a caveat to keep in mind.

And what about the issue of inequality that I mentioned before? Surely that has an impact on attitudes towards the both free market and the future? Well it does, albeit in an interesting and nuanced way. Citing Pew:

A global median of 60% say that the gap between rich and poor is a very big problem in their country. Concern is somewhat higher among developing economies and emerging markets (median of 60% in each), but is also shared by people in advanced economies (56%).Nonetheless, despite this high level of worry about inequality, the issue only ties or tops the list of economic problems in four of the 44 countries surveyed. In general, people in advanced economies tend to worry more about public debt and unemployment than inequality, while those in emerging markets and developing economies are more concerned about inflation and jobs.

The top culprit for income inequality cited by publics around the world is their national government’s economic policies. A global median of 29% say their government’s policies are to blame for the gap between the rich and the poor, while the amount workers are paid is a close second at 23%. Globally, people place less blame on the educational system (11%), a lack of individual hard work (10%), trade between countries (8%) and the structure of the tax system (8%).

Advanced economies in particular lean toward the notion that their governments are to blame for inequality (median of 32%). The Greeks (54%), Spanish (52%) and South Koreans (46%) are government’s harshest critics. Significant percentages among advanced economies also fault workers’ wages for the gap between the rich and the poor, including 29% in Japan and 26% each in France and Germany. The Americans and British are two of the few publics to blame individuals’ lack of hard work (24%) about as much as they do their government’s policies (24% in U.S., 23% in UK).

Emerging markets are more divided. Pluralities in nine of the 25 countries surveyed blame their government for inequality in their country, including roughly four-in-ten or more in Ukraine (45%), India (45%), Lebanon (43%), China (43%), Tunisia (43%), Turkey (42%) and Nigeria (39%). Meanwhile, pluralities in another six countries say workers’ wages are the primary scapegoat. Latin American publics – such as Brazilians (44%), Chileans (39%) and Colombians (39%) – are particularly likely to blame inadequate take-home pay for the gap between the rich and poor.

People in developing economies are also split between blaming the government for income inequality in their country and faulting workers’ wages. Pluralities in Kenya (36%), Ghana (29%) and Tanzania (29%) say inequality is their government’s fault, while Salvadorans (32%) tend to blame the amount workers are paid. Nearly equal percentages in the Palestinian territories, Bangladesh, Senegal and Uganda say both the government and wages are the culprits. Nicaragua (31%) is the country with the highest percentage who say a lack of individual hard work is the problem.

And what do most respondents think is the solution? Well, given that government is perceived to be the problem, it stands to reason that the most popular solution would be to weaken the public sector in favor of strengthening the private one, as the results indeed show:

Pluralities or majorities in 22 of the 44 countries surveyed say to reduce inequality it is more effective to have low taxes on the wealthy and corporations to encourage investment and economic growth rather than high taxes on the wealthy and corporations to fund programs that help the poor. Publics in 13 countries prefer the high tax option.

Overall, advanced economies (median of 48%) are somewhat more supportive than either developing (40%) or emerging (31%) countries of using high taxes on the wealthy and corporations to address income inequality. The broadest support comes from Germany, where 61% favor using high taxes to fund poverty programs. Roughly half or more in Spain (54%), South Korea (53%), the UK (50%) and the U.S. (49%) agree. In Italy (68%), France (61%) and Greece (50%), opinion leans toward low taxes to encourage investment.In most advanced economies, people who say they are very concerned about inequality are particularly supportive of income redistribution to reduce the gap between the rich and poor.

There is also a large ideological divide over taxes in Europe and the U.S. In general, individuals on the left are much more likely than those on the right to prefer high taxes on the wealthy and corporations. For example, 71% of those on the left in Spain support redistribution, compared with 45% of people on the right. In the U.S., 70% of liberals say high taxes are more effective to combat inequality while just 33% of conservatives agree.

The prevailing view in most emerging markets surveyed is that low taxes on the rich and businesses to stimulate growth are a better way to address inequality. Roughly six-in-ten or more express this opinion in Brazil (77%), Argentina (60%), Vietnam (60%) and the Philippines (59%). In just five of the 25 emerging countries do pluralities or majorities pick high taxes as the preferred means of reducing the gap between the rich and poor, including 57% in Jordan, 53% each in Egypt and Chile, 48% in Ukraine and 42% in China.

Developing economies also lean more toward low taxes on the wealthy and corporations to encourage investment rather than high taxes for redistribution. At least half prefer low taxes in Uganda (64%), Ghana (57%), Kenya (52%) and Nicaragua (52%). El Salvador is the only developing economy where a majority (58%) chooses high taxes.

Again, this reflects greater faith on private sector forces — businesses, entrepreneurs, and civil society — as avenues of prosperity than public ones, namely the state and its policies. Given that corruption and inefficiency are endemic in most developing world governments, such pessimism towards public officialdom is perhaps expected, especially when those societies are otherwise more optimistic about the future and their own economic potential — and thus more wary of historically inept states getting in the way.

The conflicted solutions offered by respondents in richer countries may reflect the fact that both the public and business sectors have been disappointing, with trust in all institutions at a record low. There is plenty of blame to go around, but where does the answer life if both economic and political elites are culpable? That is a question deserving of its own blog altogether, so I will leave that to you all.

Anyway, Pew looked at attitudes to more than just the free market. There is also the universally important matter of how someone gets ahead in life. Participants were asked to rank the importance of several factors of success from zero (“not important”) to 10 (“very important”). The results were largely in favor of “getting a better education”, which 60 percent of respondents checked as maximally important. Here’s the Pew report again:

Among those surveyed in the most advanced economies, Spaniards place the greatest value on education as a factor of success, with 71 percent saying that it is very important. Not so in France, where the value of education was given its lowest marks among all surveyed countries with only 24 percent characterizing education as a critical factor. Ironically, by international standards the quality of education in France is higher than in countries where a much greater percentage felt a good education was a very important precursor to success (86 percent of Venezuelans, for example).

Half of the survey’s respondents believe that “hard work” is very important for success, while 37 percent say the same about “knowing the right people”, 33 percent about being “lucky”, and 20 percent about belonging “to a wealthy family”. Seventeen percent of those polled view being male as critical to success, and just 5 percent feel the same way about giving bribes. The countries where the greatest percentage of people believe that family money is very important for getting ahead in life are Tunisia (46 percent) and Nigeria (45 percent). These are also two of the countries where respondents ranked bribery among the most important determinants of success.

Here are how the results played out from country to country (again, the question was what is most important for getting ahead in life).

Another interesting result to point out: in 32 of the 44 countries surveyed, more men believed that being male was an advantage to success than women. With more women taking change of their economic and political future (as evidenced by higher rates of female employment and civic participation), they feel more hopeful and emboldened that the system can and does work in their favor. But that is just my own (optimistic) speculation.

Still, there does appear to be a consensus across all these different societies: economic prosperity is dependent largely on factors beyond one’s control, an attitude that even the most optimistic countries shared.

Pretty interesting stuff, and a lot to ruminate on. My time is short and my analysis is spotty, so I encourage you all to check out the report for yourself and draw your own conclusions. As always, I welcome feedback.

The Most Popular Country in the World

Nations are often spoken of as if they were individuals: Russia and Ukraine are fighting, China says Japan should stay out of its territorial waters, Iran is unfriendly to Americans. A lot of this comes down to basic expediency: it is a lot easier to refer to countries as monolithic entities than to get into the specifics (“Brazil says” rather than “the Brazilian government says”, for example).

But countries have long been personified for reasons other than simple ease. Everything that they embody — their political institutions, culture, people, climate, geography, etc. — amounts to a cohesive identity or national character of sorts. And countries, like individuals, can be loved, hatred, admired, and in some way or another related with. (Within International Relations, we study the phenomenon of “nations as persons” and whether it has any legitimacy or basis.)

They even have to worry about social standing: just as we worry about our image and status among a community of people, so too do the countries of the world content with how they are perceived by the international community. Hence why governments engage in public relations — whether through formal diplomatic channels, the funding of cultural institutions, or the launching of state news broadcasters — and why things like the Anholt-GfK Nation Brands Index exist.

Spearheading the fascinating world of nation branding — which has only become more relevant in our increasingly globalized and interconnected world — the survey asks over 20,000 people across 20 countries their perceptions of 50 countries. Each nation is scored on factors ranging from exports and governance to culture and people.

As The Atlantic reported, five-year first-place winner America has been overtaken by Germany, which had previously occupied the top spot in 2008. Here is the top ten as of 2014:

1. Germany

2. United States

3. United Kingdom

4. France

5. Canada

6. Japan

7. Italy

8. Switzerland

9. Australia

10. Sweden

Interestingly, the top ten has not changed much since 2010, which was as far back as I could find data (the survey was launched in 2005). The same countries more or less occupy the same spots, rising or falling by only a point or two (but never falling off entirely).

You can read the methodology of the report here. According to an official press release, Germany’s burgeoning international image can be attributed to several factors, including — of all things — “sport excellence”, which was “the largest gain seen this year for any single attribute across the 50 measured nations”.

Simon Anholt, an independent policy advisor, explains, “Germany appears to have benefited not only from the sports prowess it displayed on the world stage at the FIFA World Cup championship, but also by solidifying its perceived leadership in Europe through a robust economy and steady political stewardship. Germany’s score gains in the areas of ‘honest and competent government’, ‘investment climate’, and ‘social equality’ are among the largest it achieved across all the aspects covered by the NBI 2014 survey.”

In contrast, the USA has shown the least impressive NBI gain among the developed nations. While it still is seen as number one in several areas, including creativity, contemporary culture, and educational institutions, its role in global peace and security only ranks 19th out of 50 nations.

Meanwhile, here is why the U.S. (as well as nascent rival Russia) fared less well this time around.

Xiaoyan Zhao, Senior Vice President and Director of NBI at GfK, comments, “In a year of various international confrontations, the United States has lost significant ground where tension has been felt the most acutely. Both Russia and Egypt have downgraded the U.S. in an unprecedented manner, particularly in their perception of American commitment to global peace and security, and in their assessment of the competence of the U.S. government.  However, on a global level, it is Russia that has received the strongest criticism from public opinion.”

In previous years, Russia had shown upward momentum – but in the 2014 NBI study, it stands out as the only nation out of 50 to suffer a precipitous drop. Russia’s largest decline is registered on the Governance dimension, especially for the attribute of its perceived role in international peace and security. This is the most drastic score drop seen for any single attribute across the 50 nations. Overall in this year’s study, Russia has slipped three places to 25th, overtaken by Argentina, China, and Singapore.

The two countries cannot seem to shake off their legacy of global meddling and the subsequent negative impact it is having on their international standing, although Russia seems worse affected by it than America; subsequently, I am curious about the national breakdown of the respondents and how much certain nationalities dragged down or pulled up the overall score for certain countries.

In any case, the U.S. is hardly in bad shape, all things considered, and much of that clearly has to do with the heft of its “soft power” — from its music and entertainment media (especially film), to its top-notch universities still-attractive (if not weakening) civil values, America projects a lot of influenced and a positive image around the world. It is little wonder that so many other countries, including China, are seeking to emulate this soft power approach by promoting cultural and ideological products.

I would wager that the rest of the top ten ranks highly for similar reasons: all of them either have strong, globally-exported cultures (especially the U.K., France, and Italy), or enjoy a reputation for good governance, high-quality of life, and benign foreign policy (Australia, Canada, Sweden, and Switzerland).

In any case, Germany’s status as a brand champion is hardly surprising, all things considered. From its robust (if still shaky) economy and (relatively) pacifistic foreign policy, to policies like free college tuition and strong arts funding, the country has a lot going for it across different sectors. Its well-trained workers and less-indebted homeowners seem better off and happier than counterparts elsewhere in the world, and while political cynicism is as high among the German populace as it is anywhere else in the post-recession world, national pride — and with it a sense of purpose as a global role model — is growing (albeit with a degree of restraint, given the lingering shadow of the early to mid-20th century).

In the end, countries — again, like people — can learn a lot from one another with respect to national performance, be it in the real of politics and economics or even in sports. Not only is excelling in these areas a valuable end in itself, but as the study’s press release observes:

“International diplomacy clearly reaches beyond the realm of public opinion – however, policy makers need to be keenly aware that the way in which a country is perceived globally can make a critical difference to the success of its business, trade and tourism efforts, as well as its diplomatic and cultural relations with other nations. As our partner Simon Anholt often says, the only superpower left in today’s world is global public opinion.”

What are your thoughts?

Africa Rising

When one thinks of Africa, prosperity and progress rarely come to mind. In the minds of most Westerners especially, the name conjures up chronic instability, strife, poverty, and (more so lately) disease. But the people of Africa — incredibly diverse and culturally rich — are nothing if not resilient, and they have endured these widespread (though often exaggerated) hardships with remarkable tenacity and perseverance.

The end result is a broadly improved outlook for this fast-growing continent’s future, whose vast potential already being realized, according to a special report by The Economist:

War, famine and dictators have become rarer. People still struggle to make ends meet, just as they do in China and India. They don’t always have enough to eat, they may lack education, they despair at daily injustices and some want to emigrate. But most Africans no longer fear a violent or premature end and can hope to see their children do well. That applies across much of the continent, including the sub-Saharan part, the main focus of this report.

African statistics are often unreliable, but broadly the numbers suggest that human development in sub-Saharan Africa has made huge leaps. Secondary-school enrollment grew by 48% between 2000 and 2008 after many states expanded their education programmes and scrapped school fees. Over the past decade malaria deaths in some of the worst-affected countries have declined by 30% and HIV infections by up to 74%. Life expectancy across Africa has increased by about 10% and child mortality rates in most countries have been falling steeply.

A booming economy has made a big difference. Over the past ten years real income per person has increased by more than 30%, whereas in the previous 20 years it shrank by nearly 10%. Africa is the world’s fastest-growing continent just now. Over the next decade its GDP is expected to rise by an average of 6% a year, not least thanks to foreign direct investment. FDI has gone from $15 billion in 2002 to $37 billion in 2006 and $46 billion in 2012.

Many goods and services that used to be scarce, including telephones, are now widely available. Africa has three mobile phones for every four people, the same as India. By 2017 nearly 30% of households are expected to have a television set, an almost fivefold increase over ten years. Nigeria produces more movies than America does. Film-makers, novelists, designers, musicians and artists thrive in a new climate of hope. Opinion polls show that almost two-thirds of Africans think this year will be better than last, double the European rate.

Indeed, while all eyes are (nonetheless justifiably) on China and India, Africa has clearly become another rising force in the global economy, especially as its population is far younger and faster-growing than most parts of the world (which, while currently problematic in light of strained resources, might bode well for the long-term if its potential is harnessed).

Of course, Africa is not a monolithic place by any stretch: on every level, from politics to culture, it is the most diverse geographic area on the planet, by some estimates more than the rest of the world combined. As such, it is not surprising that different countries or regions on the continent are going in varying directions, in equally varying degrees. But the overall trend seems encouraging, if the following maps are any indication:

Africa Rising

Africa Politics

In recognition of how many readers may be skeptical of such a rosy few of Africa’s prospects, The Economist had set out to verify these data with a physical tour of the continent, perhaps the longest ever undertaken by a journalist (at least by my recollection).

Inevitably, Africa’s rise is being hyped. Boosters proclaim an “African century” and talk of “the China of tomorrow” or “a new India”. Sceptics retort that Africa has seen false dawns before. They fear that foreign investors will exploit locals and that the continent will be “not lifted but looted”. They also worry that many officials are corrupt, and that those who are straight often lack expertise, putting them at a disadvantage in negotiations with investors.

So who is right? To find out, your correspondent traveled overland across the continent from Dakar to Cape Town (see map), taking in regional centres such as Lagos, Nairobi and Johannesburg as well as plenty of bush and desert. Each part of the trip focused on one of the big themes with which the continent is grappling—political violence, governance, economic development—as outlined in the articles that follow.

The journey covered some 15,800 miles (25,400km) on rivers, railways and roads, almost all of them paved and open for business. Not once was your correspondent asked for a bribe along the way, though a few drivers may have given small gratuities to policemen. The trip took 112 days, and on all but nine of them e-mail by smartphone was available. It was rarely dangerous or difficult. Borders were easily crossed and visas could be had for a few dollars on the spot or within a day in the nearest capital. By contrast, in 2001, when Paul Theroux researched his epic travel book, “Dark Star Safari: Overland from Cairo to Cape Town”, he was shot at, forced into detours and subjected to endless discomforts.

Doubtless, I will be keeping track of the coming articles based on this continental tour. I strongly welcome a more nuanced and firsthand account of Africa beyond the usual stereotypes of decay, underdevelopment, and misery. While we should not make light of the many humanitarian issues that still bedevil that region (among many others), nor get carried away into thinking that prosperity is destiny, it is vital to see that progress is possible and Africa is more than just its negative stereotypes.

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‘Walmart’s Worst Nightmare’ Is Expanding Massively

Eupraxsophy:

This is definitely a good company to keep an eye on, especially as it continues to expand across the west coast (and hopefully beyond). WinCo is employee owned and managed, and offers generous pension and healthcare benefits even to part-timers — all this while managing to offer lower costs to consumers than even infamously exploitative Walmart. Hopefully this model catches on. Read more about it on Forbes.

Originally posted on TIME:

WinCo Foods is pushing into one of the country’s hottest grocery store markets, Texas—and the competition is quaking in their boots.

View original 822 more words

Chart: Gender Equality Around the World

The World Economic Forum’s annual Global Gender Gap Report determines disparities between men and women in areas like political empowerment, economic opportunity, health, and education. Scores are tallied between zero and one, with one signifying perfect equality (an impossible ranking thus far for even the most progressive countries, though thankfully no country ever ranks at zero). Here is a chart of some of the results courtesy of The Economist.

Out of 142 countries examined in 2014’s index, Iceland topped the list at 0.86, followed by the rest of the Scandinavian countries — Denmark, Finland, Norway, and Sweden — taking the next four highest slots. This is perhaps not too surprising, given that these nations typically perform very well in just about every metric of human development, from poverty to social stability.

But plenty of developing countries have high gender equality as well; Nicaragua, the Philippines, and Rwanda each made it to the top ten despite being among the world’s poorest countries. This challenges the notion that economic and political development are the main factors bettering the lives of women (although such solutions certainly help of course).

Like most social and culture values, a lot of multidimensional influences are at work in determining the treatment and opportunity accorded towards women. Thankfully, many countries seem to be improving in this and other metrics of human development, but we still have a long way to go. What are your thoughts?

 

The Greatest Threat to the World?

There seems to be no shortage of candidates for greatest threat to the world (by which we usually mean humanity specifically) — climate change, world war, nuclear weapons, a pandemic, an asteroid, or maybe even a combination of these factors. As it turns out, however, where you live determines what you consider to be most dangerous to the rest of the world.

That is the conclusion of a recent survey by the Pew Research Center, which asked 48,643 respondents in 44 countries what is the greatest danger to the global community (note, this took place before the breakout of Ebola but after events like the Syrian Civil War and the showdown between the West and Russia over Ukraine).

As Mic.com reports:

In the United States and Europe, income inequality came out on top. In the Middle East, religious and ethnic was considered the biggest threat. While Asia listed pollution and the environment, Latin America cited nuclear weapons, and Africa chose AIDS and other diseases.

Unsurprisingly, the concerns fell largely within geographic and regional boundaries. The United States and Europe are home to some of the largest and most advanced economies in the world, so it’s somewhat expected — if ironic — that they’re worried about income inequality. Asia is home to 17 out of the 20 most polluted cities in the world, and, as of 2012, sub-Saharan Africa accounted for 70% of the world’s AIDS cases.

In other words, all of us appear to have an exceptionally narrow view of the world: We see the biggest threats to our region as the biggest threats to everyone else, too.

Here is a visual representation of that data, also courtesy of Mic.com:

Moreover, the perception that religious and ethnic hatred poses the greatest threat to the world has seen the most growth over the past seven years, no doubt due to numerous high-profile sectarian conflicts across the planet.

Courtesy of The Atlantic is a color-coded map of the world that better shows how these great threats are geographically and culturally spread out:

A few other observations of the data from The Atlantic piece:

  • Other than Japan, the countries that saw nuclear weapons as their biggest danger included Russia (29 percent), Ukraine (36 percent), Brazil (28 percent), and Turkey (34 percent).
  •  The U.K.’s greatest concern was religious and ethnic hatred (39 percent), putting it in the same group as India (25 percent), Israel (30 percent), the Palestinian territories (40 percent), Lebanon (58 percent), and Malaysia (32 percent).
  • People in France were equally divided on what they consider the biggest threat, with 32 percent saying inequality and the same percentage saying religious and ethnic hatred.
  • Likewise in Mexico, nuclear weapons and pollution were tied as most menacing, at 26 percent.

It is also important to point out that in many cases, no single fear was dominant: in the U.S. for example, inequality edged over religious and ethnic hatred and nuclear weapons by only a few points. And in almost every region, anywhere from a fifth to a quarter of respondents expressed fear towards nuclear weapons (which I feel can be taken to mean war among states where the use of nukes is most likely). The survey observed that in many places, “there is no clear consensus” as to what constitutes the greatest danger to humanity, as this graph of all countries shows:

These results are very telling: as the earlier excerpt noted, you can learn a lot about a country’s circumstances based on what its people fear the most. Reading backwards from the results, it makes sense that what nations find the most threatening is what they have been most imperiled by presently or historically.

It is also interesting to note how societies, like individuals, view the world through their own experiential prism: because we are obviously most impacted and familiar with what immediately effects us, it makes sense that we would project those experiences beyond our vicinity. Just as our own individual beliefs — be they religious, political, social, etc. — are colored by personal life experiences, so too do entire nations often apply their most familiar concerns and struggles to the world at large.

Of course, this varies by country as well as by the respondents who represent said country; in many cases, participants are more likely come from higher educational and socioeconomic backgrounds, and thus reflect their class views rather than that of their wider society. (Admittedly, I am not sure if that applies to this particular Pew survey, as the respondents were interviewed by phone or face-to-face, with no indication as to their background.)

For my part, I personally put the most weight behind climate change, especially as it can exacerbate a lot of existing issues over the long-term (clashes among ethnic/religious groups over strained resources, refugees fleeing crop failures and placing strain upon host countries, etc.). What are your thoughts and opinions regarding the world’s greatest threat?

The Most Popular Cities in the World to Work

In an increasingly globalized world, people have no shortage of options when it comes to choosing their place of work or business. Advances in telecommunications technology, airline travel, and international relations make it easier than ever to reside in tens of thousands of cities of your choosing.

But with literally a whole world to choose from, it can be overwhelming trying to make up your mind. Thankfully, the record number of expats across the world has spurred consultancies and other institutions to uncover the best place in which to unlock all that global talent.

CityLab cites a recent study conducted jointly by the Boston Consulting Group (BCG) and The Network, a recruiting firm, which asked respondents what five cities they would consider living in. Over 203,000 people across 189 countries replied, and the following chart represents their consensus:

Before assessing the results further, it is important to take into account the following caveat:

These results should, however, be taken in the context of the global distribution of survey respondents. Roughly half of respondents are currently located in Europe, which may help explain the relatively high share of those selecting European cities for an international move. This compares to the just 10 percent of respondents from Asia. But an even smaller share —about nine percent—are currently located in the U.S., and just under two percent are from Canada. Those low percentages indicate that the countries’ popularity as work destinations is less skewed by relative locals willing to hop over borders, and more by their global attractiveness to international talent.

It’s also worth pointing out that the survey is skewed towards top talent and does not reflect the preferred destinations of the world’s populations broadly. Nearly one in four (23 percent) of respondents had master’s degree or postgraduate qualifications; 36 percent had bachelor’s degrees; and just 10 percent of respondents replied “none” or “other” when queried about their educational attainment.

All that said, perhaps it unsurprising that the world’s leading economic and financial hub, London, took the top place, followed by its equally weighty rivals of New York City and Paris. Most of the remaining top ten are made up of medium-sized cities best known for their quality of life rather than their business opportunities – only Singapore tends to rank as a powerful commercial center.

Indeed, the majority of the top thirty are comprised of cities that strike that vital balance of economic growth, sociopolitical stability, and cultural richness that most expats seek. As with any domestic career, most workers want to enjoy a health work-life balance made easier by good infrastructure, lots of recreational and leisure opportunities, and the like.

The study also revealed a lot of other interesting trends and motivations regarding the world’s increasingly globalized labor force. For example, while nearly two-thirds of respondents expressed a willingness to move abroad for work, this varied widely depending on where they currently lived and worked:

Workers from the U.S., U.K., Denmark, Germany, and Ireland, as well as Latvia and Russia, were among the least likely to move. But workers from the United Arab Emirates, Tunisia, Saudi Arabia, Pakistan, Jamaica, and surprisingly the advanced nations of France and the Netherlands were among the nations with the highest share of residents ready to move. The survey results don’t indicate why the latter two countries had such high percentages of pro-moving respondents, but it may be because highly-educated French and Dutch residents are likely to be attracted to global powerhouses like London and New York, which provide more opportunities for top talent.

Willingness to move abroad for work, however, is not always a good sign. In countries like Pakistan, the report found that 97 percent of residents said they would be willing to go abroad for work—in this case, an indication of just how many people are interested in escaping that nation’s troubled economy and political instability.

There are a lot of other factors at play in these trends, including sociocultural attitudes (many countries have a long and established history of emigration and travel, or have significant diaspora communities that make settling and working abroad easier). It is also no coincidence that many of the top cities chosen by workers (as well as the countries in which they are based) tend to be fairly cosmopolitan and multicultural places.

Of course, where one decides to work and live also comes down to personal preference, forces beyond one’s control notwithstanding. That said, where would you live and work if you could choose?

Chart: Global Wealth Distribution

Since I have been on a bit of an infographic kick lately, here is yet another interesting chart courtesy of The Economist, which measures an issue dear to my heart: wealth inequality. The contrasts inherent in it are quite sobering:

To recap, there are around 35 million millionaires in the world, constituting just 0.7 percent of the adult population — yet together, they hold 44 percent of the world’s total wealth of $262 trillion (up from $117 trillion in 2000). This is an increasingly common arrangement in most parts of the world, so it is little surprise that the same plays out on the international stage, especially as globalization proliferates the systems and trends that contribute to this top-heavy concentration of wealth.

Here are some additional details from the article:

Today 94.5% of the world’s household wealth is held by 20% of the adult population, according to new data from Credit Suisse. Wealth is so unevenly distributed, that you need just $3,650 (less debts) to count yourself among the richest half of the world’s population. A mere $77,000 brings you among the wealthiest 10%. And just $798,000 puts you into the ranks of the 1%—within the reach of many white-collar urban professionals in the West. Hence, more than 35m people carry such a plump purse. Among the three billion adults at the bottom with less than $10,000 in wealth, 90% reside in developing countries. Yet 15% of millionaires live in developing countries too.

Such a stark contrast in fortunes, especially with so much of the world remaining poor despite all the growth in wealth, does not bode well for the economic and sociopolitical stability of this planet (much less of many individual nations, where circumstances are even more dire). What are your thoughts and reactions?

World’s Biggest Economies — GPD Per Capita

In a previous post, we looked at the world’s largest economies during the past 2,000 years. To recap, China and India both overwhelmingly dominated the global economy for much of this period, being superseded only 100 years ago (only to begin rising once more at the turn of the 21st century).

This time around, we will see the world’s top three richest economies during the same period, but based on GDP per capita (e.g. adjusted by population). As before, The Economist is the source, and the results are pretty interesting.

Since I am busy today, I will not have the time to weigh in on these results as before — I will leave that to you all!

Graph: The U.S. Leads the Way in Low-Wage Work and Pay

As has sadly been the case all too often these days, one of the latest reports from the Economic Policy Institute, an American think-tank, is grim: low-wage workers (the 10th percentile of wage earners) have seen their real pay decline by five percent over the 1979-2013 period, despite concurrent productivity gains of 64.9 percent.

Consequently, American low-wage workers fare the worst in the developed world: according to the OECD, as of 2012, they earned just 46.7 percent of what a median worker worker does, far below the OECD average of 59.9 percent; to catch up to that average, U.S. low wage workers would need a 28 percent raise in their wages.

The graph below highlights this issue rather starkly:

Note that over a quarter of America’s labor force — 25.3 percent to be exact — is low wage, which is defined as earning less than two-thirds of the median wage. On this metric, too, the United States ranks the highest among the 26 countries surveyed, and far higher than the OECD average of 16.3 percent.

Thus, the U.S. has the largest number of low-paid workers in the developed world, and they in turn are the lowest paid in the developed world. And while several countries, such as the U.K., Ireland, and Canada, come close, most of them at the very least have more developed social safety nets to offset the shortfall among low-wage workers (universal healthcare alone is a major mitigating factor, given that medical bills account for many cases of bankruptcies among the American poor).

Setting aside the considerable amount of misery that comes with low paying and often menial labor, the broader impact on the long-term prosperity of the nation cannot be understated: with one out of four workers (and their dependents) having so little income, consumer demand — the lifeblood of the economy — stagnates. Fewer people are able to afford an education or vocational training, leading to a lot of untapped and desperately needed potential.

All this despite the nation’s economic elites — its executives, shareholders, and investors — broadly doing better than ever. Is it really so untenable for companies to spare some of their record, post-recession profits to improve the plight of their beleaguered workers — i.e. the consumers and patrons they all so badly need?

 

In any case, this is a point I have made too many times before, so instead of retreading it once more, I will leave you with this illuminating report by  Elise Gould (also from EPI) on Why America’s Workers Need Faster Wage Growth—And What We Can Do About It. As always, feel free to share your thoughts and feedback.