Spotting the Losers: Seven Signs of Non-Competitive States

I thought everyone had read this. Guess not. Go thee forth and read this; it's essential reading for the 21st century.

The invisible hand of the market has become an informal but uncompromising lawgiver. Globalization demands conformity to the practices of the global leaders, especially to those of the United States. If you do not conform--or innovate--you lose. If you try to quit the game, you lose even more profoundly. The rules of international competition, whether in the economic, cultural, or conventional military fields, grow ever more homogeneous. No government can afford practices that retard development. Yet such practices are often so deeply embedded in tradition, custom, and belief that the state cannot jettison them. That which provides the greatest psychological comfort to members of foreign cultures is often that which renders them noncompetitive against America's explosive creativity--our self-reinforcing dynamism fostered by law, efficiency, openness, flexibility, market discipline, and social mobility.

Traditional indicators of noncompetitive performance still apply: corruption (the most seductive activity humans can consummate while clothed); the absence of sound, equitably enforced laws; civil strife; or government attempts to overmanage a national economy. As change has internationalized and accelerated, however, new predictive tools have emerged. They are as simple as they are fundamental, and they are rooted in culture. The greater the degree to which a state--or an entire civilization--succumbs to these "seven deadly sins" of collective behavior, the more likely that entity is to fail to progress or even to maintain its position in the struggle for a share of the world's wealth and power. Whether analyzing military capabilities, cultural viability, or economic potential, these seven factors offer a quick study of the likely performance of a state, region, or population group in the coming century.

The Seven Factors

These key "failure factors" are:

* Restrictions on the free flow of information.
* The subjugation of women.
* Inability to accept responsibility for individual or collective failure.
* The extended family or clan as the basic unit of social organization.
* Domination by a restrictive religion.
* A low valuation of education.
* Low prestige assigned to work.

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Spotting the Losers: Seven Signs of Non-Competitive States