Difference between revisions of "Essay: High income countries are rarely authoritarian countries in our technological age driven by innovation"
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*[https://www.byarcadia.org/post/falling-into-the-middle-income-trap-stagnant-innovation-and-growth-in-latin-america The Middle-Income Trap: Stagnant Innovation and Growth in Latin America] | *[https://www.byarcadia.org/post/falling-into-the-middle-income-trap-stagnant-innovation-and-growth-in-latin-america The Middle-Income Trap: Stagnant Innovation and Growth in Latin America] | ||
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== Middle-income trap == | == Middle-income trap == |
Revision as of 20:43, May 12, 2024
Creativity, innovation, and technology are increasingly drivers of economic growth and change in the world.[1][2] And in today's fast-moving world, countries and companies need to adapt to rapid change or quickly fall behind more economically competitive countries.
Openness to experience is important to one's level of creativity.[3] Needless to say, top-down, authoritarian regimes which restrict information, engage in heavy propaganda and oppress dissent, are not big fostering openness in their societies. Thus, their societies have less of an ability to be creative/innovative.
In today's economic climate, there is evidence that in order middle-income countries to become high-income countries, they must escape the middle-income trap and innovation plays a role in this matter.[4]
The Amazon description of the book The Exponential Age: How Accelerating Technology is Transforming Business, Politics and Society:
“ | A bold exploration and call-to-arms over the widening gap between AI, automation, and big data—and our ability to deal with its effects
We are living in the first exponential age. High-tech innovations are created at dazzling speeds; technological forces we barely understand remake our homes and workplaces; centuries-old tenets of politics and economics are upturned by new technologies. It all points to a world that is getting faster at a dizzying pace. Azeem Azhar, renowned technology analyst and host of the Exponential View podcast, offers a revelatory new model for understanding how technology is evolving so fast, and why it fundamentally alters the world. He roots his analysis in the idea of an “exponential gap” in which technological developments rapidly outpace our society’s ability to catch up. Azhar shows that this divide explains many problems of our time—from political polarization to ballooning inequality to unchecked corporate power. With stunning clarity of vision, he delves into how the exponential gap is a near-inevitable consequence of the rise of AI, automation, and other exponential technologies, like renewable energy, 3D printing, and synthetic biology, which loom over the horizon. And he offers a set of policy solutions that can prevent the growing exponential gap from fragmenting, weakening, or even destroying our societies. The result is a wholly new way to think about technology, one that will transform our understanding of the economy, politics, and the future.[5] |
” |
Question: In today's economic environment, are high income countries rarely authoritarian countries?
The answer to this question is an unequivocal yes!
Contents
- 1 High income countries are rarely authoritarian countries
- 2 Authoritarian regimes are less stable which hurts economic growth
- 3 Why has the West been so successful?
- 4 Asian Development Bank: The middle-income countries transition to high-income counties around the globe: Characteristics of graduation and slowdown
- 5 Innovation and countries going from middle-income countries to high-income countries
- 6 Middle-income trap
- 7 The difference between creativity and innovation. Capitalism incentivizes innovation by making it more profitable for the innovators
- 8 The role of technology and innovation in shaping democratic capitalist economies
- 9 China, lower innovation than the USA and intellectual property theft
- 10 General international politics essays
- 11 The United States essays
- 12 China essays
- 13 Russia essays
- 14 References
High income countries are rarely authoritarian countries
In 2024, with the exception of Saudi Arabia and United Arab Emirates, which have lots of oil, no authoritarian regime is a high income country (See: High income countries in 2024 and World Bank high income countries).
Research indicates that in the long-term, non-authoritarian countries are more likely to experience greater economic growth. See: Under Authoritarian Rule and Economic Growth, CORI Working Paper No. 2007-02
Article that supports the thesis that authoritarian are rarely authoritarian countries:
Authoritarian regimes are less stable which hurts economic growth
There is research indicating that economies disrupted by political turmoil/unrest grow at an average rate 2 percentage points slower than those that are untroubled, with a persistent lag in the growth rate of 1 to 2 percentage points in the succeeding year.[7][8]
The abstract for the University of California, San Diego 2018 research paper Threats and Political Instability in Authoritarian Regimes: A Dynamic Theoretical Analysis:
“ | Non-democracies are seen as inherently unstable because of the high frequency of irregular and often-violent leadership turnovers. Our tractable stochastic game model investigates authoritarian stability and instability by portraying a world in which dictators are forced to tolerate threatening lieutenants because they are skillful at overcoming existential threats (shocks) to the regime. This unavoidable choice allows lieutenants to build up their own power bases, planting the seeds of various forms of authoritarian instability, including purges, coups, and civil war. Our model predicts, first and foremost, that changes in the frequency and severity of exogenous threats can have a profound impact on political stability. Contrary to research on the trade off between competence and loyalty, our model shows that when threats to the regime are existential and purges are an option, the dictator will always prefer to employ a competent lieutenant. Also, surprisingly, even with minimal institutional guarantees, we find that authoritarian regimes can be quite stable if the dictator and the lieutenant need each other for their unique skills in the face of major challenges. However, in accordance with the existing literature, credible institutions to ensure the welfare of ousted officials do, indeed, reduce the chance of internal conflict.[9] | ” |
Why has the West been so successful?
See also: Why has the West been so successful?
Question: Are there very positive aspects of Western Civilization? If so, what are they?
The West:
- Why the West Won’t Collapse with Stephen Kotkin (Stephen Kotkin is an American historian, academic, and author.)
Western values:
- China and Russia Are Giving Authoritarianism a Bad Name, April 18, 2022
Western missionaries and the good things that they helped create in the world. Also, Christianity and social stability
See also: Christianity and social stability
The article The Surprising Discovery About Those Colonialist, Proselytizing Missionaries published in Christianity Today notes:
“ | In his fifth year of graduate school, Woodberry created a statistical model that could test the connection between missionary work and the health of nations. He and a few research assistants spent two years coding data and refining their methods. They hoped to compute the lasting effect of missionaries, on average, worldwide...
One morning, in a windowless, dusty computer lab lit by fluorescent bulbs, Woodberry ran the first big test. After he finished prepping the statistical program on his computer, he clicked "Enter" and then leaned forward to read the results. "I was shocked," says Woodberry. "It was like an atomic bomb. The impact of missions on global democracy was huge. I kept adding variables to the model—factors that people had been studying and writing about for the past 40 years—and they all got wiped out. It was amazing. I knew, then, I was on to something really important." Woodberry already had historical proof that missionaries had educated women and the poor, promoted widespread printing, led nationalist movements that empowered ordinary citizens, and fueled other key elements of democracy. Now the statistics were backing it up: Missionaries weren't just part of the picture. They were central to it... Areas where Protestant missionaries had a significant presence in the past are on average more economically developed today, with comparatively better health, lower infant mortality, lower corruption, greater literacy, higher educational attainment (especially for women), and more robust membership in nongovernmental associations. In short: Want a blossoming democracy today? The solution is simple—if you have a time machine: Send a 19th-century missionary... ...at a conference presentation in 2002, Woodberry got a break. In the room sat Charles Harper Jr., then a vice president at the John Templeton Foundation, which was actively funding research on religion and social change. (Its grant recipients have included Christianity Today.) Three years later, Woodberry received half a million dollars from the foundation's Spiritual Capital Project, hired almost 50 research assistants, and set up a huge database project at the University of Texas, where he had taken a position in the sociology department. The team spent years amassing more statistical data and doing more historical analyses, further confirming his theory. ...Woodberry's historical and statistical work has finally captured glowing attention. A summation of his 14 years of research—published in 2012 in the American Political Science Review, the discipline's top journal—has won four major awards, including the prestigious Luebbert Article Award for best article in comparative politics. Its startling title: "The Missionary Roots of Liberal Democracy." ...over a dozen studies have confirmed Woodberry's findings. The growing body of research is beginning to change the way scholars, aid workers, and economists think about democracy and development.[11] |
” |
David Beidel wrote in his article The Bloodless Revolution: What We Need to Learn from John Wesley and the Great Awakening
“ | In the 18th Century, most of Europe was on fire. Bloody civil wars and revolutions were decimating nation after nation. Unrestrained injustice, government and Church corruption, slave trade and the oppression of the poor created a powder keg for violence. Miraculously, Great Britain escaped the horrors of civil war and the brutal savagery that revolutionary anarchy engenders.
Few ancient monarchies are still in place today. The mystery of the UK’s capacity to honor the old guard, while raising up a more democratic system without a revolution, is a sociological wonder. Many credit the Great Awakening, in particular the Methodist movement, launched by John Wesley, for this extraordinary and peaceful transition. Methodism unleashed an army of “little Christ’s” all over Europe. They cared for the poor, took in unwanted and abused children, fought unjust laws and labor conditions, visited prisoners, and battled against slavery; They joined hands with the Apostles and “turned the world upside down.” Eventually compassion became fashionable... America is in desperate need of a Christ-infused revolution of compassion. We are a land of churches, who are well positioned to hear and answer the cries of our struggling communities. If a critical mass of congregations committed themselves to radically sharing the Gospel and passionately serving under-resourced/at-risk communities, we will see peace powerfully rise in these times of trouble. This will also enable, as in the days of John Wesley, wise reformation to take place because the true Christian Church is theologically hardwired to bring about peaceful, meaningful change that benefits all. I have written much about this in my book, Samaria, The Great Omission, and treasure every opportunity to strategize with churches who have a heart to minister in this way. Let us stand in the gap as cultural/community peacemakers and healers in this season of sorrow and division. May our magnificent obsession be Jesus, the everlasting, ever loving, rescuer of the oppressed and Father of all.[12] |
” |
Asian Development Bank: The middle-income countries transition to high-income counties around the globe: Characteristics of graduation and slowdown
See also: Middle-income countries and Middle-income trap
Middle-income countries is the term which the World Bank defines as: "economies with a gross national income (GNI) per capita between $1,136 and $13,845 as of 2024. MICs consist of lower-middle-income countries and upper-middle-income countries, both of which are part of the income categories that the World Bank uses to classify economies for operational and analytical purposes,"[15] as measured in U.S. dollars.
The Asian Development Bank is an institution established in 1966 with 31 offices in the world designed to promote social and economic development in Asia. The Bank is headquartered in Manilla, Philippines.
The abstract for the Asian Development Bank 2015 paper entitled The Middle-Income Transition around the Globe: Characteristics of Graduation and Slowdown indicates:
“ | The paper investigates the situation of middle-income economies around the world. Since 1965, only 18 economies with a population of more than 3 million and not dependent on oil exports have made the transition to being high-income. Many more have not been able to move beyond the middle-income stage. We conduct statistical tests of differences between two groups of economies across a range of growth and development variables. The results suggest that middle-income economies are particularly weak in the following areas: governance, infrastructure, savings and investment, inequality, and quality—but not quantity—of education. The findings are used to suggest whether the People’s Republic of China is successfully progressing through the middle-income stage or whether it may get caught in a middle-income trap.[16] | ” |
Innovation and countries going from middle-income countries to high-income countries
See also: Innovation
Below are articles on innovation and countries going from middle-income countries to high-income countries:
- Innovation key to avoiding middle-income trap, Daily Star, 2024
- Escaping the Middle-Income Trap: Innovate or Perish, Asian Development Bank, 2017
Middle-income trap
See also: Middle-income trap and Innovation and Productivity
The middle-income trap refers to an economic situation where a middle-income country is failing to transform itself to a high-income economy due to its rising costs and declining competitiveness (Historically few countries successfully manage the transition from low to middle to high income).[17][18][19][20]
The Asia Society describes the middle-income trap thusly: "The “middle-income trap” is a theory of economic development in which wages in a country rise to the point that growth potential in export-driven low-skill manufacturing is exhausted before it attains the innovative capability needed to boost productivity and compete with developed countries in higher value-chain industries. Thus, there are few avenues for further growth — and wages stagnate."[21]
The 2023 Mint News article There is no easy escape from the middle-income trap indicates: "Graduating from middle income to developed world status is the greatest prize in development economics. Only a handful of East Asian and Central European countries have made the transition so far, along with a few fortunate resource-rich countries."[22]
Middle-income trap and various countries:
- Material related to whether or not China escapes the middle-income trap
- India and the middle-income trap
- Philippines is projected to move from a lower middle-income country to an upper middle-income country. Philippines and the middle-income trap
Global Innovation Index
See also: Global Innovation Index and Innovation
The Global Innovation Index is an annual ranking of countries by their capacity for and success in innovation. It is published by the World Intellectual Property Organization (WIPO). It was started in 2007 by Institut Européen d'Administration des Affaires (INSEAD) and World Business (a British magazine).
2023 Global Innovation Index rankings
Map of labor productivity in the world by country
See also: Labor productivity
According to the U.S. Labor Bureau of Statistics, labor productivity is a measure of economic performance that compares the amount of output with the amount of labor used to produce that output."[27]
Investopedia says about the importance of labor productivity to an economy, "Labor productivity is largely driven by investment in capital, technological progress, and human capital development. Labor productivity is directly linked to improved standards of living in the form of higher consumption. As an economy's labor productivity grows, it produces more goods and services for the same amount of relative work. This increase in output makes it possible to consume more of the goods and services for an increasingly reasonable price."[28]
According to Yahoo Finance: "Efficiency in production, also coined as productivity, is one of the major driving forces behind economic resilience in a country."[29]
Investopedia indicates: "Education tends to raise productivity and creativity, as well as stimulate entrepreneurship and technological breakthroughs. All of these factors lead to greater output and economic growth."[30]
The Organisation for Economic Co-operation and Development states concerning labor productivity: "Labour productivity is a key precondition for high growth of output, employment and wages and central to long-term growth in living standards."[31]
In an economy, one of the causes of wage raises is an increase in marginal labor productivity rates.[32]
The USA has one of the highest labor productivity rates in the world - significantly higher than both China and Russia
The difference between creativity and innovation. Capitalism incentivizes innovation by making it more profitable for the innovators
See also: Creativity
According to Business News Daily:
“ | Creativity is the spontaneous development of new ideas and out-of-the-box thinking.
Innovation is applied creativity, in which the spark of a new idea is turned into a novel solution or process. Hunter weighs in with his own definition: “Innovation is the implementation or creation of something new that has realized value to others.” Innovation is realized most vividly in the form of a tool, physical benefit or aid that solves a problem or creates an advantage.[36] |
” |
Capitalism incentivizes innovation by making it more profitable for the innovators (See: Relation between Innovation and Capitalism).
The role of technology and innovation in shaping democratic capitalist economies
- The Role of Technology and Innovation in Shaping Democratic Capitalist Economies, Denny Center For Democratic Capitalism, Georgetown University, 2024
China, lower innovation than the USA and intellectual property theft
See also: Atheism and stealing
According to China Daily, “One significant way Asian cultures differ from Western cultures is that they place group identity over individual identity. This factor limits the ability of Asians to think outside the box. “[41]
In 2019, the Chinese leader Xi Jinping said about the Chinese economy, "Though our economy has vaulted to second place in the world, it is big and not strong, and its bloatedness and frailty are quite prominent. This is mainly reflected in the lack of strength in innovation ability, which is the ‘Achilles heel’ of this lug of an economy of ours.”[42]
In addition, China is a communist country and communists countries, including China, are well known for their political propaganda and various forms of political/cultural indoctrination. For example, in 2018, the Associated Press published an article entitled China’s mass indoctrination camps evoke Cultural Revolution.[43]
Intellectual property (IP) is knowledge that can be owned. Examples include copyrights, patents, trademarks and trade secrets.
According to the website China Law Blog:
“ | The disappearance of Made in China 2025. From 2015 to 2017, the Chinese government touted its Made in China 2025 program as its core policy for development of the Chinese economy. Due to pressure from the U.S., Europe and Japan, public discussion of the program has virtually ceased. Foreign opposition to this program has been based on the following two factors:
...The advances in technical expertise outlined in the program do not rely on Chinese domestic innovation. Rather, the program relies on forced technology transfer and IP theft.[44] |
” |
The American Enterprise Institute reported in 2018:
“ | In reports from 2013 and 2017 the independent Commission on the Theft of American Intellectual Property concluded that China was the chief culprit in the loss of between $250 and $600 billion annually from IP theft (patents, copyrights, trademarks, and trade secrets).[45] | ” |
Bloomberg News declared concerning China and intellectual property theft: "A 2017 survey by the European Union Chamber of Commerce in China found that 'visible progress' had been made around IP, but 51 percent of firms said enforcement was still inadequate."[46]
General international politics essays
- The myth of multipolarity. What do the terms unipolar, bipolar and multipolar mean as far as international relations?
- The so-called multipolar world is often mere Chinese propaganda and public relations
- Why did so many self-declared international relations experts miserably fail concerning their multipolar fantasy?
- What drives Xi Jinping and Vladimir Putin?
- Why has the West been so successful?
- Why the corrupt, authoritarian regimes of China and Russia are losing their long term competitive edge relative to the USA
- Slow and steady growth over the long term via capitalism and the rule of law versus short-sighted authoritarian economic growth that is costly to the long term economy
- December 2021 was a pivotal moment in the future of global politics for decades to come
- American and Western triumphalism or a realistic appraisal of world affairs?
- Attention anti-American hyper Russophiles/Sinophiles. Time is not on your side
- The 2023 BRICS Summit was a bunch of hoopla. We still don't live in a multipolar world.
- The wreck of the HMS Multipolar World Fantasy - Humor
- The anti-Christianity Mao Zedong, Fidel Castro, Joseph Stalin and Xi Jinping have opposed homosexuality so this isn't a very high moral bar for China and Russia to clear
The United States essays
- The United States will be the leading power in the world for the foreseeable future
- The USA has one of the highest labor productivity rates in the world - significantly higher than both China and Russia
- The USA is more innovative and productive than China and Russia
- Business is more powerful than military might. All REAL Americans know this!
- Is the USA an economic powerhouse and juggernaut?
- Size of a working age population in a country and its correlation with national GNP in advanced economies. The ability of the United States to attract some of the best and brightest workers in the world
- Top 12 reasons why people are flocking to the USA and leaving the corrupt, authoritarian countries of China and Russia
- Isolationalism is growing in the United States. Is this a good thing?
- The USA is outproducing Russia and Saudi Arabia in oil production. The best is yet to come
- The USA can reduce its national debt. It has done it before
- The citizens of the United States are happier than the citizens of Russia and China. USA! USA! USA!
- The U.S. Navy is the most powerful navy in the world
- Gold reserves by country. The USA is still golden!
- The genius of the founding fathers of the United States, happiness and labor productivity
- Why I am glad that Conservapedia has an American flag in its logo rather than a Chinese or Russian flag
- The USA will become bigger, better and stronger than ever before! Russia and China will not! USA! USA! USA! - Humor
- Attention all hyper Sinophiles/Russophiles. The USA being better than China and Russia is an incredibly low bar for Americans to jump over!
China essays
Russia essays
- We Made History: Citizens of 35 Countries Overestimate Their Role in World History (Covers the notion of Russian exceptionalism)
References
- ↑ China May Be Running Out of Time To Escape the Middle-Income Trap, Asia Society, 2017
- ↑ [https://www.amazon.com/Exponential-Age-Accelerating-Technology-Transforming/dp/1635769094 The Exponential Age: How Accelerating Technology is Transforming Business, Politics and Society
- ↑ Openness to experience, plasticity, and creativity: Exploring lower-order, high-order, and interactive effects, Journal of Research in Personality, Volume 43, Issue 6, December 2009, Pages 1087-1090
- ↑ China May Be Running Out of Time To Escape the Middle-Income Trap, Asia Society, 2017
- ↑ [https://www.amazon.com/Exponential-Age-Accelerating-Technology-Transforming/dp/1635769094 The Exponential Age: How Accelerating Technology is Transforming Business, Politics and Society
- ↑ High income countries in 2024
- ↑ Institutions are catalysts for economic development and stability in Africa, The London School of Economics and Political Science website
- ↑ Coups Slow Economic Growth
- ↑ Threats and Political Instability in Authoritarian Regimes: A Dynamic Theoretical Analysis, University of California, San Diego 2018 research paper, 21st Century China Center Research Paper No. 2018-05
- ↑ The Christian origin of hospitals
- ↑ Christianity Today, The Surprising Discovery About Those Colonialist, Proselytizing Missionaries, January 8, 2014
- ↑ The Bloodless Revolution: What We Need to Learn from John Wesley and the Great Awakening by David Beidel
- ↑ Is economic growth in middle-income countries different from low-income countries? by Barry Eichengreen, Donghyun Park, and Kwanho Shin, Brookings Institute, September 25, 2017
- ↑ Is Southeast Asia falling into a Latin American style “middle-income trap”?, Cambridge Working Papers in Economics, CWPE 2267. Published 9 November 2022. Website www.econ.cam.ac.uk/cwpe
- ↑ Middle-Income Countries (MICs): Characteristics and Significance, Investopedia
- ↑ The Middle-Income Transition around the Globe: Characteristics of Graduation and Slowdown by Paul Vandenberg, Lilibeth Poot, and Jeffrey Miyamoto. Asian Development Bank. ADBI Working Paper Series. No. 519. March 2015
- ↑ Middle-Income Trap
- ↑ China May Be Running Out of Time To Escape the Middle-Income Trap, Asia Society, 2017
- ↑ Tracking the Middle-Income Trap: What is It, Who is in It, and Why? (Part 1), Asia Development Bank, 2012
- ↑ Tracking the Middle-Income Trap: What is It, Who is in It, and Why? (Part 2), Asia Development Bank, 2012
- ↑ China May Be Running Out of Time To Escape the Middle-Income Trap, Asia Society, 2017
- ↑ There is no easy escape from the middle-income trap, Mint News, 2023
- ↑ The U.S. Is (Again) Among the World's Top Innovators, U.S. News and World Report, 2023
- ↑ Global Innovation Index 2023: Switzerland, Sweden and the U.S. lead the Global Innovation Ranking; Innovation Robust but Startup Funding Increasingly Uncertain
- ↑ World's Most Innovative Countries, Statista website, 2023
- ↑ Ranked: The Most Innovative Countries in 2023
- ↑ Productivity 101, U.S. Labor Bureau of Statistics
- ↑ Labor Productivity: What It Is, How to Calculate & Improve It, Investopedia
- ↑ 25 Most Productive Countries Per Capita, Yahoo Finance
- ↑ How Education and Training Affect the Economy
- ↑ How does Russia compare?, Organisation for Economic Co-operation and Development
- ↑ 30 Best Basic Economics Quotes With Image
- ↑ Labor Productivity: What It Is, How to Calculate & Improve It, Investopedia
- ↑ 25 Most Productive Countries Per Capita, Yahoo Finance
- ↑ Most Productive Countries 2024
- ↑ Creativity Is Not Innovation (But You Need Both), Business News Daily, 2024
- ↑ The Human Body: God's Masterpiece
- ↑ The Enigmatic Human Brain by Wallace G. Smith
- ↑ The Most Complex Structure, Creation Moments
- ↑ Why China censors banned Winnie the Pooh, BBC
- ↑ Group over individual
- ↑ Lack of innovation is 'Achilles heel' for China's economy, Xi says, Reuters, 2019
- ↑ [https://www.apnews.com/6e151296fb194f85ba69a8babd972e4b/China%27s-mass-indoctrination-camps-evoke-Cultural-Revolution China’s mass indoctrination camps evoke Cultural Revolution, Associated Press, May 18, 2018
- ↑ The Top Ten Issues for China’s Economy by Steve Dickinson on December 27, 2018, China Law Blog
- ↑ Chinese intellectual property theft: Time for show trials (but get our story straight) by Claude Barfield, August 27, 2018, AEIdeas
- ↑ [https://www.bloomberg.com/news/articles/2018-12-05/what-s-intellectual-property-and-does-china-steal-it-quicktake What Is Intellectual Property, and Does China Steal It? By Grant Clark, December 4, 2018, Bloomberg News