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Check out Slovenia for a counterexample. You can do either approach badly or well.
by literallycancer 7y ago
Check out Slovenia for a counterexample. You can do either approach badly or well.
- dsego 7y agoSince when is Slovenia a former soviet state?
- vkou 7y agoIt's not a former Soviet state, being a part of former Yugoslavia, which was a member of the non-aligned movement. It was, however, a stong-man communist dictatorship.
- atlasunshrugged 7y agoI'd also be curious the effect of EU funding - I know Estonia received hundreds of millions if not billions over the years on development and I'd guess it's much the same for Latvia/Lithuania as well
- lnsru 7y agoLook at Germany. It’s a better experiment. Former democratic part got billions from westerners and didn’t evolve far. They got basically new infrastructure build from western money, but people left former communistic paradise. Salary gap is still huge. That’s why Tesla picked location there and not in the western part of the country.
- TulliusCicero 7y agoThe US has similar variation in GDP per capita in its states, despite having had essentially the same economic system at least back to the civil war over 150 years ago.
- jogundas 7y agoA much more nuanced story can be told about Germany, see eg https://www.economist.com/europe/2019/10/31/germans-still-dont-agree-on-what-reunification-meant https://www.economist.com/europe/2019/10/31/germans-still-do... . When it comes to the Tesla factory, it will be right outside Berlin https://www.dw.com/en/tesla-factory-outside-berlin-to-cost-4-billion/a-51286353 https://www.dw.com/en/tesla-factory-outside-berlin-to-cost-4... .
- ben_w 7y agoBerlin is in the east of Germany. I live in Berlin, and have considered cycling to Poland and back as a day trip. One of my German coworkers remarks often that wages for any given job in former-DDR-areas are much lower than the same jobs in pre-reunification-Bundesrepublik-Deutschland-areas.
- swebs 7y agoBerlin was both. Hence why they had to build the wall.
- ben_w 7y agoYes, but the Tesla factory is “just outside” Berlin, so I didn’t feel that detail was important in this case.
- IndrekR 7y agoWest Berlin was a political enclave in DDR. ~150 km from the inner German border [1]. Just outside Berlin is pretty much ex-DDR territory. At the same time Berlin does have quite a strong foreign community and high migration, lately negative for Germans and positive for other ethnic groups [2]. It is the second largest city (by population) in Europe after London with much lower living costs [3]. Also Daimler and BMW have strong presence in Berlin. Those factors may have influenced the Tesla's decision a lot. [1] https://en.wikipedia.org/wiki/Inner_German_border https://en.wikipedia.org/wiki/Inner_German_border [2] https://www.statistik-berlin-brandenburg.de/produkte/kleinestatistik/AP_KleineStatistik_EN_2018_BE.pdf https://www.statistik-berlin-brandenburg.de/produkte/kleines... [3] https://teleport.org/compare/berlin-and-london/ https://teleport.org/compare/berlin-and-london/
- markvdb 7y agoLatvia received EU subsidies of 2.76% of GDP in 2017 [0]. It contributed 0.69% of GDP, for a net EU contribution to Latvia of 2.07% of GDP. According to government posters pasted all around Latvia, EU support constituted about 12.8% of government budget(!), or 9.6% net after accounting for Latvia's contributions to the EU budget. [0] https://europa.eu/european-union/about-eu/countries/member-countries/latvia_en https://europa.eu/european-union/about-eu/countries/member-c...
- riffraff 7y agosorry I don't get it: what is Slovenia a counterexample of? It seems to be a fairly wealthy country now, with a market economy and liberalised services.
- literallycancer 7y agoA huge chunk of their economy are state owned companies. They didn't privatize everything like most other post communist countries and they are still doing rather well. They are quite small, so not directly comparable to bigger countries but still interesting.
- rapsey 7y agoWhat are you talking about? Counter example to what?