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There's a vast difference in the effect on a country depending on whether its competitive advantage comes from resources or people though. If it comes from res
by pytester 8y ago
There's a vast difference in the effect on a country depending on whether its competitive advantage comes from resources or people though.
If it comes from resources then the incentive to develop the people is lost and they're either bought off or ignored. Look at what happens in Russia or Venezuela or Saudi Arabia.
- throwaway284721 8y agoSo what's wrong with being bought off? People in Kuwait have it very well.
- pytester 8y agoIn the 17th century Bolivia was considered the richest country in the Americas because of the Potosi silver mine while the eastern seaboard of America was basically a poverty stricken nowhere. Now Bolivia is the poorest country in the Americas and the US is the richest. This is basically why. The answer is - it works fine until the resource price drops or you run out of it. Kuwait may be fat and content now but it has a dark future ahead of it once they stop being able to live off foreign cash.
- dredmorbius 8y agoNauru's birdshit apocalypse. https://www.nytimes.com/1995/12/10/world/a-pacific-island-nation-is-stripped-of-everything.html https://www.nytimes.com/1995/12/10/world/a-pacific-island-na...