View source for Essay: Diversified economies, resilience and stability

[[File:Loc of United States.png|thumbnail|400px|right|Although the [[United States]] is rich in natural resources, it has a diversified economy.<ref>[https://www.thebalancemoney.com/how-natural-resources-boost-the-u-s-economy-3306228 U.S. Natural Resources]</ref><ref>[https://www.worldatlas.com/articles/countries-with-the-most-diverse-economies.html#:~:text=Most%20Diverse%20Economies-,Japan,the%20sophistication%20of%20its%20exports. Countries With The Most Diverse Economies]</ref>]]

Countries with diversified economies are generally more resilient and stable.

[[Booz & Company]] was formerly a global strategy consulting team established in the United States in 1914. The firm was acquired by PricewaterhouseCooper (PwC) on April 4, 2014. A condition of its sale to PwC from its parent company, Booz Allen Hamilton (a contractor for the [[National Security Agency]]) was to change its name, which became Strategy&. [[Edward Snowden]] was an employee of Booz Allen.

Below is the executive summary of their report published in 2011 before being acquired by PwC entitled ''Resilient, stable, sustainable: The benefits of economic diversification''
{{Cquote|The effects of the recent global economic crisis were allpervasive, and demonstrated that no economy is safe from destabilizing external events. Resource-dependent countries, with their narrow base of economic activity, are particularly vulnerable, but all countries may have vulnerabilities stemming from a lack of diversification in one or more economic dimensions, and they must be more vigilant in managing risks to their economies. Not only must a country’s gross domestic product (GDP) be balanced among sectors, but key elements of its economy must be varied, flexible, and readily applicable to a variety of economic opportunities, and areas of overconcentration must continually be identified and mitigated. Policymakers should work to achieve greater economic diversification, in order to reduce the impact of external events and foster more robust, resilient growth over the long term.

For resource-rich, developing economies, the immediate imperative is to diversify export-oriented sectors, but for the benefit of long-term sustainability, they must also look
at the larger picture. A strong institutional and regulatory framework and workforce development initiatives are indispensable to the diversification effort; and proper management of human capital is key, especially in those countries experiencing a “demographic dividend.” Implementing such comprehensive diversification and risk management strategies won’t be easy, but the result—a
diverse, stable, and growing economy—is worth the effort.<ref>[https://www.strategyand.pwc.com/m1/en/reports/strategyand-resilient-stable-sustainable-benefits-economic-diversification.pdf ''Resilient, stable, sustainable: The benefits of economic diversification''], Booz & Company, 2011</ref>}}

'''Key questions:'''  

*[https://grok.com/share/c2hhcmQtNA%3D%3D_509ff5e3-054c-4034-9205-639d48e8162d Are economies that are well-diversified more resilient and does this include having a well-developed services sector and do they have more opportunities for innovations in various sectors to spread in the general economy via cross-pollination?], 2025

*[https://grok.com/share/c2hhcmQtNA%3D%3D_62435f0f-85e7-42a4-8d52-c5873b2699b4 How important are services when it comes to an economy escaping the middle-income trap?], 2025

== The USA was among the most 10 most diverse economies in 2018 according to the Word Atlas website ==

[[Donald Trump]] promoted a policy of onshoring manufacturing - particularly when it comes to China. 

According to some sources the United States will attempt to reshore some of its supply chains and produce more things domestically for several reasons and this could give it more security from foreign disruptions.<ref>
*[https://www.forbes.com/sites/billconerly/2023/08/19/us-manufacturers-reshoring-but-it-will-take-a-long-time/?sh=4081a5e54c91 U.S. Manufacturers Reshoring, But It Will Take A Long Time], Forbes, August 19, 2023
*[https://www.cnbc.com/2023/06/01/reshoring-more-domestic-manufacturing-due-to-supply-chain-disruption.html Firms are bringing production back home because of the Ukraine war, China’s slowdown — and TikTok], NBC News, June 1, 2023
*[https://www.sme.org/technologies/articles/2023/october/reshoring-and-restoring-u.s.-manufacturing/ Reshoring and Restoring U.S. Manufacturing], October 23, 2023
*[https://www.rbccm.com/en/story/story.page?dcr=templatedata/article/story/data/2023/07/a-new-wave-of-reshoring-for-us-manufacturers A New Wave of Reshoring for US Manufacturers] 
*[https://www.eweek.com/it-management/reshoring-alleviates-supply-chain-issues/ Reshoring Alleviates Supply Chain Issues – But It Needs Tech to Control Costs], eWeek, August 10, 2023
*[https://www.americanmanufacturing.org/blog/mckinsey-study-shortened-supply-chains-are-coming/ McKinsey Study: Shortened Supply Chains are Coming]
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[[File:Countries with the most diverse economies.jpg|thumbnail|1000px|center|The USA was among the most 10 most diverse economies in 2018 according to the Word Atlas website.<ref>[https://www.worldatlas.com/articles/countries-with-the-most-diverse-economies.html#:~:text=Most%20Diverse%20Economies-,Japan,the%20sophistication%20of%20its%20exports. Countries With The Most Diverse Economies]</ref>
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Read the articles: [https://www.amarilloedc.com/blog/the-importance-of-a-diversified-economy#:~:text=A%20diversified%20economy%20creates%20a,the%20growth%20of%20supporting%20industries. The Importance Of A Diversified Economy] and [https://www.strategyand.pwc.com/m1/en/reports/strategyand-resilient-stable-sustainable-benefits-economic-diversification.pdf ''Resilient, stable, sustainable: The benefits of economic diversification''] ]]
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== Quotes ==

"The starting point for energy security today as it has always been is diversification of supplies and sources. - Daniel Yergin, American author, speaker, energy expert, and economic historian<ref>[https://www.brainyquote.com/topics/diversification-quotes Diversification quotes - Brainy quotes]</ref>

"Diversification has been, and balance, like Wellington, has been so drummed into me, it's part of my personality."  - John C. Bogle, American investor, business magnate, and philanthropist<ref>[https://www.brainyquote.com/topics/diversification-quotes Diversification quotes - Brainy quotes]</ref>

"I've always been a big believer in diversification for anybody. It's never good to put all of your efforts and all of your time and all of your financial resources into just one project. Diversification is key for any individual and any business." - Paul Heyman<ref>[https://www.brainyquote.com/topics/diversification-quotes Diversification quotes - Brainy quotes]</ref>

"Don't put all your [[egg]]s in one basket" - Popular saying.  The phrase is said to be first used in the novel “[[Don Quixote]]”, where it was written “It is the part of a wise man to keep himself today for tomorrow, and not venture all his eggs in one basket.”<ref>[https://www.languagecouncils.sg/goodenglish/resources/idioms/dont-put-all-your-eggs-in-one-basket DON’T PUT ALL YOUR EGGS IN ONE BASKET]</ref>
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[[File:Eggs in a basket.jpg|center|thumbnail|350px|"Don't put all your [[egg]]s in one basket" - Popular saying.]]
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== See also ==

*[[Essay: Cultural characteristics of the most productive and prosperous countries per capita|Cultural characteristics of the most productive and prosperous countries per capita]]
*[[Economics]]

== External links ==

*[https://www.amarilloedc.com/blog/the-importance-of-a-diversified-economy#:~:text=A%20diversified%20economy%20creates%20a,the%20growth%20of%20supporting%20industries. The Importance Of A Diversified Economy], Amarillo Economic Development
*''[https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7456524/#:~:text=The%20argument%20that%20industrial%20diversification,overall%20volatility%20in%20metro%20employment. Economic diversification and the resiliency hypothesis: Evidence from the impact of natural disasters on regional housing values]'', Reg Sci Urban Econ. 2020 Nov; 85: 103581. Published online 2020 Aug 30. doi: 10.1016/j.regsciurbeco.2020.103581

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[[Category: Essays]]