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talkpoliticsI recently came across this piece that purports to summarise several specific good economic examples from various parts of the world. The question is, could we imagine a society where all those models are combined, to get a so called "super nation"? If no, what would the obstacles be?
In a nutshell:
Singapore - using indigenous strategies to invest smartly in human capital. Subsidising the education system and adopting a meritocratic principle. The result: ranking 1st in the quality of math and science education.
Canada - adopting a high-skilled immigration policy and an open and straightforward immigration process, with three categories: economic, family reunification and refugee, the former contributing hugely to economic growth.
Finland - investing in innovation, entrepreneurship, and research development. Working actively to transform a resource-based to a knowledge-based economy. Result: Finland currently has twice the average patent output that the OECD has.
Switzerland - adopting highly attractive corporate tax rates and granting a high degree of autonomy to the regions in terms of setting their own rates. Result: many international companies moving their headquarters to Switzerland.
Israel / Germany - developing an active venture capital network, including programs providing mechanisms of due-diligence for investments, thus fostering a highly competent and competitive business environment, which is particularly favourable for small- and medium-size enterprises.
Britain - developing scientific research to mobilise collaborative effort between researchers and industry to commercialise academic R&D. Launching innovation investment funds to support promising businesses, and attracting capital from the private sector to create a large technology fund.
South Korea - creating a business environment that is highly conductive to innovative activities, and making sure they are embedded in the economy. Introducing reforms that make it easier to start a business, cutting corporate tax rates. Result: ranking ever higher in the world's business indexes.
The article also cites partisanship as one of the main obstacles to such measures. I tend to agree with that. the other problem being the lack of visionaries in the leadership circles, and a proper coordination and proneness to cooperation between policy-makers and business.
In a nutshell:
Singapore - using indigenous strategies to invest smartly in human capital. Subsidising the education system and adopting a meritocratic principle. The result: ranking 1st in the quality of math and science education.
Canada - adopting a high-skilled immigration policy and an open and straightforward immigration process, with three categories: economic, family reunification and refugee, the former contributing hugely to economic growth.
Finland - investing in innovation, entrepreneurship, and research development. Working actively to transform a resource-based to a knowledge-based economy. Result: Finland currently has twice the average patent output that the OECD has.
Switzerland - adopting highly attractive corporate tax rates and granting a high degree of autonomy to the regions in terms of setting their own rates. Result: many international companies moving their headquarters to Switzerland.
Israel / Germany - developing an active venture capital network, including programs providing mechanisms of due-diligence for investments, thus fostering a highly competent and competitive business environment, which is particularly favourable for small- and medium-size enterprises.
Britain - developing scientific research to mobilise collaborative effort between researchers and industry to commercialise academic R&D. Launching innovation investment funds to support promising businesses, and attracting capital from the private sector to create a large technology fund.
South Korea - creating a business environment that is highly conductive to innovative activities, and making sure they are embedded in the economy. Introducing reforms that make it easier to start a business, cutting corporate tax rates. Result: ranking ever higher in the world's business indexes.
The article also cites partisanship as one of the main obstacles to such measures. I tend to agree with that. the other problem being the lack of visionaries in the leadership circles, and a proper coordination and proneness to cooperation between policy-makers and business.
(no subject)
Date: 21/8/15 11:48 (UTC)(no subject)
Date: 21/8/15 14:35 (UTC)In addition, the Finnish economy is in the middle of a severe structural change, as employment is decreasing in the traditional wood-processing, paper and heavy industry sectors. Surprisingly, employment is also decreasing in certain service sector areas, such as banking. The situation has further deteriorated because of the ageing population. So this poses a triple challenge to their economy and growth prospects. The good news is that Finland does already have all the conditions to emerge stronger from this situation, but obviously this can't happen without the external factors arranging themselves favorably. The bad news is that these external factors do not look likely to arrange themselves favorably any time soon.
This still doesn't mean Finland wouldn't continue to rank among the highest in terms of their economy's viability.