Economic Freedom vs. Social Progress

According to the 2017 Index of Economic Freedom,  conducted annually by the Heritage Foundation, a leading U.S. conservative think tank, the following countries rank the highest in “economic freedom”, which includes factors such as rule of law, property rights, ease of starting and running a business, and regulatory and tax burden:

  1. Hong Kong
  2. Singapore
  3. New Zealand
  4. Switzerland
  5. Australia
  6. Estonia
  7. Canada
  8. United Arab Emirates
  9. Ireland
  10. Chile

The United States ranks 17th, after Lithuania and the Netherlands and ahead of Denmark and Sweden (though not by much). Continue reading

Lessons From Singapore’s Health Care

When it comes to the never-ending debate on America’s health care system, international comparisons abound. The usual point of reference is, naturally, our neighbor to the north, although France, Switzerland, and the U.K. are sometimes invoked as well (the French in particular have been consistently recognized by the WHO as having the best health care in the world).

However, there is no shortage of countries with universal health care systems of some form or another, so why not broaden the scope of these comparative analyses to see what else we can learn? New York Times columnist  did just that with a piece that examines the incredible success and efficiency of the Singaporean model. Continue reading

The Next China

In 1980, when it first began to liberalize and open up to the world, China was already the ninth largest economy (albeit due mostly to its sheer size). The embrace of low-cost manufacturing, wherein China in essence became the  world’s factory, played a key role in propelling it towards becoming the second largest economy just thirty year later; by some metrics, it has already surprised the United States as the single largest economy.

Now that China is transitioning rapidly towards medium and high-tech industry (akin to developed countries), it is leaving room for another Asian powerhouse to takes its place. According to an article in The Diplomat, the five likeliest contenders are Malaysia, India, Thailand, Indonesia, and Vietnam — the MITI-V, or more colorfully, the”Mighty Five”.

Within the next five years, these nations will rise to be among the world’s fifteen most globally competitive manufacturing countries. This is a critical stage in the advancement  of a society’s wealth and prosperity: according to a report from consultancy McKinsey & Company, industrial development “contributes disproportionately to exports, innovation, and productivity growth”. Continue reading

The World’s Healthiest Countries

According to the Bloomberg Global Health Index, which includes such factors as life expectancy, access to health care, and malnutrition, these are the world’s healthiest countries:

The top ten nations were:

  1. Italy
  2. Iceland
  3. Switzerland
  4. Singapore
  5. Australia
  6. Spain
  7. Japan
  8. Sweden
  9. Israel
  10. Luxembourg

Continue reading

Luxembourg – Future Space Power?

With a population of less than 600,000 (half of whom are foreign nationals), Luxembourg, which is nestled between France, Germany, and Belgium, is rarely center-stage internationally. Its biggest claim to fame is serving as an infamous tax haven second to Switzerland, and being one of the richest nations in the world (with a GDP per capita of around $100,000).

It is perhaps because of this great wealth and prosperity, as well as its relatively low profile (it maintains a policy of neutrality in most affairs), that this little country is aiming to become the “Silicon Valley of space mining”, to quote the headline of an article in Wired reporting on Luxembourg’s outsized ambitions in space. Continue reading

These Will Be The World’s Top Economies in Just 14 Years

PwC, a prominent financial services firm better known as PricewaterhouseCoopers, has published a report on the future of the global economy, which is projected to more than double between now and 2050. In the span of just 14 years, today’s 32 largest economies — which together comprise 85 percent of global GDP — will experience highly divergent fortunes, as current heavyweights will cede ground to up and coming powers. Continue reading

Canada, Finland, and Others Unveil Basic Income Experiments

Having been one of the first countries to test out a guaranteed basic income back in the 1970s, Canada is once again planning to experiment with this idea, via a proposed pilot program wherein low income participants will receive an average of $1,320 monthly without conditions.

The project, which is to be launched in Canada’s largest province, Ontario, in fall of 2017, is laid out in a paper authored by Hugh Segal, a former senator and now special adviser to the province. According to the official proposal, the program’s aim will be to answer the most common questions and concerns regarding a basic income, including:

  • Can basic income policies provide a more efficient, less intrusive, and less stigmatizing way of delivering income support for those now living in poverty?
  • Can those policies also encourage work, relieve financial and time poverty, and reduce economic marginalization?
  • Can a basic income reduce cost pressures in other areas of government spending, such as healthcare?
  • Can a basic income strengthen the incentive to work, by responsibly helping those who are working but still living below the poverty line?

Continue reading

Global STEM Leaders

STEM — short for science, technology, engineering, and mathematics — is all the rage these days, as economies across the world become more knowledge-based, and as humanity faces threats like climate change and resource depletion that will require creative, technological solutions.

That’s why so many nations, especially in the developing world, are trying to gain a competitive advantage by investing in STEM education and seeking to attract STEM graduates from abroad. According to Forbes, which cites a report from the World Economic Forum, these are the countries leading the way:

20170202_stem

Unsurprisingly, with their large and youthful populations, India and China have the most graduates overall at 78 million and 77.7 million, respectively. The U.S. is in third place with 67.4 million graduates, although the quality of its degrees may be greater than that of its competitors, whose education infrastructure is younger, less developed, and less prestigious (for now).

Japan’s high ranking is not surprising given that is a well established scientific and economic powerhouse, although its aging population and low rate of immigration likely explains why it doesn’t rank higher despite a population of 126 million. Russia, Iran, and Indonesia are rarely touted as academic leaders, but each is fairly populous — at 147 million, 75 million, and 260 million respectively — and Russia and Iran in particular have a long history of scientific achievement.

However, China may soon close this gap as it continues to improve its institutions and education standards:

Some estimates see the number of Chinese graduates aged between 25 and 34 rising 300 percent up to 2030 compared to just 30 percent in the U.S. and Europe. According to the World Economic Forum, STEM (science, technology, engineering and mathematics) has become a pretty big deal in China’s flourishing universities. In 2013, 40 percent of Chinese graduates finished a degree in STEM, over twice the share in American third level institutions

In an increasingly globalized world, the ability to draw and retain students and graduates from around the world will likely become a bigger consideration for more countries. For all the complexities of its visa and customs systems, the U.S. has long enjoyed an edge in this regard — for example, all six of its 2016 Nobel Prize winners were foreign-born.

But a wave of nativism and xenophobia may undercut its attractiveness as a research and academic hub, and other countries — including neighboring Canada — have begun to step up as alternative options, dangling such incentives as a path to citizenship upon graduation.

One thing is for certain. The future of a nation’s success and survival will depend on its command of technology and science. How it goes about advancing those intellectual resources is a different matter altogether. But any country’s increasing education is humanity’s gain.

 

 

 

Don’t Mess With Mexico

Following the now-official proposal to build a wall along the U.S.-Mexico border — and to force Mexico to pay for it — Foreign Policy reminds us not to undervalue our relationship with our southern neighbor.

Among other considerations, Mexico’s economy is the 11th or 15th largest in the world, depending on the metric. It is our third largest trading partner, accounting for 6 million U.S. jobs and $1.5 billion worth of commerce daily, and anywhere between 2-4 percent of U.S. GDP. More American citizens live in Mexico than anywhere else in the world, and it is the most popular tourist destination.

Perhaps most importantly, Mexico contributes 80 percent of avocados consumed in the U.S. (I am being facetious of course, although the fruit’s popularity here is no joke.)

To save some time, I’ll also reiterate my own post from 2015 about Mexico’s probable was a major economic power in its own right:

Mexico is actually doing far better than most people realize, despite its many pressing social and political problems. Following the recession, the Mexican economy has grown twice as fast as America’s, and was among the fastest growing in the world in some years (albeit from a much lower base) … [It] is predicted by groups like Goldman Sachs and the World Bank to become the fifth to seventh largest economy by 2050 – around the level that France, Germany, and the U.K. are at today.

A few analysts have gone even further by suggesting that Mexico could become an influential global power in its own right. This is not as far fetched as it may initially sound: in many areas, such as infrastructure and business climate, the country is at least comparable, if superior, to Brazil, China, India, Russia, and other identified emerging powers; it has even earned coveted classification as one of several economic powerhouses to look out for — see the MINT group or the Next Eleven.

These accolades are well deserved. Since the mid-1990s, the majority of Mexicans have joined a rapidly growing middle-class, warranting the county’s official classification as a newly industrialized nation (NIC), a distinction only a handful of developing countries have achieved. Mexico’s average life expectancy and poverty rate is comparable to the U.S. (thanks in part to its universal healthcare system), while one-third of Mexican states have a violent crime rate equal to or even less than that of many U.S. states.

Mexico does of course have its problems, and its power dynamic with the U.S. makes it by far the junior partner in this bilateral relationship. But contrary to popular perception (at least among Americans) Mexico is far from a failed state. In spite of all its struggles, it has managed to become one of the world’s most robust economies, and has the potential to be a significant player in international affairs.

While the U.S. can still do a lot of damage to the country (far more than the other way around, to be sure) it is still insensible — not to mention immoral — to disrupt our relations with one of only two neighbors, a country whose interests and people are deeply intertwined with our own. As it is, the proposed 20 percent tax on Mexican imports to fund the border wall (since Mexico stands firmly opposed to funding it) will only end up transferring the costs onto American consumers — to the tune of $15 billion.

 

Map: American Foreign Aid

Many Americans believe U.S. foreign aid is ineffective and fails o reach the people that need it most. Unfortunately, the following map from HowMuch.net, courtesy of Vox.com, validates this criticism by revealing that the vast majority of government aid largely bypasses the world’s neediest countries:

Note that while this is based on 2014 data, official aid policy hasn’t really changed.

Israel is clearly the biggest recipient by a large margin, despite being one of the world’s wealthiest countries, followed by Egypt and Jordan, which, while middle income countries, have their aid mostly contingent on their peace treaties with Israel. Many of the top recipients are not among the poorest countries in the world, and although Afghanistan and Pakistan are impoverished, their aid is also mostly tied up with foreign policy objectives (e.g. the War on Terror).