The Relationship Between Country Size and Wealth: Exploring the Case of Small Independent Areas
In a recent article, the discussion revolves around the connection between a country’s size and its economic prosperity. While it is true that many of the world’s richest countries are small in size, there are also instances where small countries are plagued by poverty. On the other hand, the United States stands out as a highly successful economy despite its large size. This begs the question: what is the correlation between size and wealth?
Instead of resorting to a simple regression analysis, it is crucial to consider various factors that influence the relationship between country size and economic prosperity. A case study highlighted by Noah Smith sheds light on the success of Native American entrepreneurship in cities like Vancouver and the US.
The examples of Native American tribes in Vancouver and the US demonstrate a common trend. These indigenous communities have thrived in densely populated areas with affluent markets, yet face stringent regulations. This juxtaposition raises interesting insights into the economic dynamics of small independent areas located near prosperous markets.
Contrastingly, when we look at larger countries in Africa like Nigeria and Congo, as well as smaller nations like Equatorial Guinea and Gambia, all suffering from poverty and inadequate governance, it becomes evident that proximity to affluent markets plays a significant role in economic success. Even within the US and Canada, indigenous communities situated in remote regions tend to struggle economically.
The key lies in identifying a market niche and capitalizing on the demand for goods and services that are restricted in nearby regulated markets. Wealthy enclaves such as Hong Kong, Macao, Luxembourg, Liechtenstein, Monaco, and Dubai, located in close proximity to larger but more regulated markets, boast some of the highest per capita GDPs globally.
Reflecting on missed opportunities like pre-revolution Havana’s economic prosperity compared to the Dominican Republic’s recent success, emphasizes the potential economic growth that small independent countries can achieve. This notion is further exemplified by envisioning the development possibilities of coastal land between Orange and San Diego counties in California.
Proposing to return this land to a Native American community as a gesture of reconciliation for past injustices could unleash a wave of innovative urban development and sustainable energy solutions. By emulating the entrepreneurial spirit of indigenous communities like the Squamish in Vancouver, there is hope for revitalizing America’s pioneer ethos.
As we navigate through complex economic landscapes, it becomes evident that size alone does not determine a country’s wealth. It is the strategic positioning of small independent areas near affluent markets that paves the way for economic prosperity and growth. By embracing diversity and fostering collaboration with indigenous communities, we can unlock untapped potential and drive sustainable development for a brighter future.
Let us draw inspiration from the resilience and ingenuity of Native American entrepreneurs and strive to create a more inclusive and prosperous society for all.
