Economic Success and Low Corruption

The Top Ten Most Powerful Economies
GDP (purchasing power parity)

Estimates for the year 2008 updated 06/27/09
(figures from CIA Factbook)

1. European Union, $14.820 trillion (moves ahead of the U.S.)
2. United States, $14.290 trillion

3. China, $7.800 trillion

4. Japan, $4.348 trillion

5. India, $3.267 trillion.

6. Germany, $2.863 trillion

7. Britain, $2.231 trillion

8. Russia, $2.225 trillion (moves ahead of France and Italy)
9. France $2.097 trillion

10. Brazil $1.190 trillion (moves ahead of Italy)

Ten Richest Countries (Per Capita GDP),

Estimates for the year 2008

1. Qatar, $101,000

2. Luxembourg, $85,100*

3. Kuwait, $60,800

4. Norway, $57,500

5. Brunei, $54,100

6. Singapore, $52,900

7. United States, $48,000

8. Ireland, $47,800

9. Hong Kong, $44,300

10. Iceland, $42,600

* Thirty percent of Luxembourg's work forces lives outside the country, which raises the per capita GDP. To reduce $80,800 by 30 percent is $54,160, moving it down to 5th place.

COMMENT:

Wealth is largely where the money goes - Burmuda, for example, not included above, with a per capita GDP of $69,900. Luxembourg and Switzerland are also big in banking. Few have been interested in putting money in Nigeria, Sierra Leone and Niger.

Wages do not necessarily equate well with per capita GDP. Equatorial Guinea has new wealth but little of has benefited its common people. Mexico had a per capita GDP of $9,000 for 2003, China $5,000, but a Mexican worker was paid about six times that of a Chinese worker. Often, however, per capita GDP and the wealth of common people do correlate reasonably.

China has the world's third greatest economy but a per capita GDP in 2006 of only $7,600, compared to $43,600 for 6th place Ireland.

Oil Production and Per Capita Benefits

Barrels per person per week. Estimates for the year 2005.
(potential benefit for a nation given the size of its population)

1. Equatorial Guinea 5.4
2. Norway 4.9
3. Saudi Arabia 2.7
4. Libya 2.0
5. Venezuela 0.84
6. Canada 0.65
7. Iraq 0.56
8. Russia 0.45
9. Algeria 0.29
10. Britain 0.28
11. Nigeria 0.19
12. United States 0.18
13. Sudan 0.07
14. Egypt 0.06

Some Remarkable Successes (A 2005 comment)

Ireland

Until the mid-1970s, Ireland suffered from poverty, and many Irish emigrated. In the 1990s Ireland began growing economically, becoming known as the Celtic Tiger. Ireland surpassed its former colonial master, Britain, in per capital GDP.For 2005 it ranks above all other European countries except Luxembourg and oil-rich Norway. Its economy was trade dependent, with some investment from the U.S. and good management by the Irish. The CIA Factbook writes that in the past decade the Irish Government has "implemented a series of national economic programs designed to curb price and wage inflation, reduce government spending, increase labor force skills, and promote foreign investment."

Comparing Ireland with Germany and France, Thomas Friedman has written:

One of first reforms Ireland instituted was to make it easier to fire people, without having to pay years of severance. Sounds brutal I know. But the easier it is to fire people, the more willing companies are to hire people.

Ireland helps the few who remain poor. It has good hospitals, and health care is free for those who cannot afford to pay. There is less crime in Ireland than in Britain, Canada and Norway. Crime in Ireland is almost as low as in Japan. Skilled people are moving to Ireland, attracted by the quality of life there.

South Korea

Colonized and exploited from 1910 to 1945, South Korea emerged from World War II with an economy on a level with the poorer countries of Asia and Africa. Then came war from 1950 to 1953 from which South Korea emerged destitute and without much infrastructure. A generation of Koreans sacrificed, working for low wages, helping their country develop an infrastructure and production for exports. These were tough times. Strikes were not allowed. Businesses and government were closely tied. There was no welfare. A family made enough money to eat or they starved. Unlike some other poor countries where a wealthy few import a lot, South Korea restricted imports. The government promoted the import of raw materials and technology at the expense of consumer goods and encouraged savings and investment over consumption. Koreans worked long hours and for awhile consumed little. Between the late 1950s to the mid-1980s, exports grew 25 percent per year. Government was involved in the economy, not only restricting imports but also directing credit and sponsoring specific industries. And the economy benefited from an educated work force. In general Koreans have a great respect for learning - a Confucian influence, some say. Koreans aggressively studied engineering and science. A small country, South Korea became the 11th largest economy in the world. Koreans are not at all a docile people. They overcame authoritarian rule. And benefits of an advanced economy accrued to the common people, including diet. By 2006 the average Korean male in his 20s was five inches taller than the average male in his twenties in 1962.

Singapore

Singapore deserves mention for its successes despite having little in natural resources. It is one of Asia's "economic tigers," and one of the world's most prosperous places. Singapore has a "free-market" economy with social welfare. Its commercial success is built on exports, with minimum restriction and the low taxes that economic success allows. The government entered into some areas of the economy, exerting leadership, assuming risk, and quick to close down enterprises that have proven unprofitable. Singapore is multi-ethnic - Chinese, Malay and Indian - and champions tolerance. It is tough on crime and disorder - some believe that it is too tough. It ranks high in the world in freedom from crime and ranks top in the world in freedom from corruption. The government has provided its citizens with low cost housing, mainly high-rises. Singapore is just a little larger than the city of San Francisco, but with 4.4 million people. The government wants to attract people in the region to its free-enterprise and low-cost health care services. Singapore has been described as a model for health care financing. The people of Singapore can choose between public and private health care services.

China and India

China has the third highest in GDP. It's GDP growth for 2005 is estimated at 9.2 percent. But its 1.3 billion people gives it a per capita GDP, estimated for 2005 at a fraction of South Korea's: $20,300 for South Korea, $6,200 for China. Some Chinese are doing well, but a lot of poverty remains in the countryside. India has also advanced economically. It has many well-educated people. Its GDP growth for 2005 is estimated at 7.2 percent. But it has 1.08 billion people and a per capita GDP of $3,400.

Botswana

Botswana has a substantially higher per capita GDP than China or India. Botswana has benefited from four decades of political stability and democracy. In the words of the CIA Factbook "Through fiscal discipline and sound management, Botswana has transformed itself from one of the poorest countries in the world to a middle-income country with a per capita GDP of $10,100 in 2005." Unlike some poorer countries, and more like South Korea, Japan and Europe in general, Botswana's population growth is low. It fact, as of 2005, it is zero. As the CIA Factbook declares: "Botswana has one of the world's highest known rates of HIV/AIDS infection, but also one of Africa's most progressive and comprehensive programs for dealing with the disease."

Ten Countries with the Least Corruption (2005 guesses)

The following figures are from nationmaster.com and drawn from degrees of corruption viewed by business people, academicians, and risk analysts. It includes police corruption, business corruption and political corruption. Ranking by nationmaster.com starts from 0 (highly clean) to 10 (highly corrupt). The data used is from they year 2003.

Finland 0.3
Iceland 0.4
Denmark 0.5
New Zealand 0.5
Singapore 0.6
Sweden 0.7
Netherlands 1.1
Norway, Australia and Switzerland 1.2

The United States and Ireland tie with a ranking of 18th, at 2.5
Japan and Israel tie with a ranking of 21st, at 3.
France ranks 23rd, at 3.1
The highest ranking Muslim country is Oman, 26th, at 3.7.
The three countries at the bottom of the list are Haiti at 8.5, Nigeria at 8.6, and Bangladesh at 8.7.

SOURCEs: CIA World Factbook and Nationmaster.com.