In another post, I pointed out that most of the world’s richest countries are small. However, it is also true that many small countries are very poor. Furthermore, the United States is in many ways the most successful economy in the world, and its economy is clearly very large. So what is the relationship between size and wealth?
You could do a “simple regression”, but I don’t think that’s the right way to approach the problem. The relationship between a country’s size and wealth may depend on a variety of factors.
A recent post by Noah Smith got me thinking about this issue. I discussed Native American entrepreneurship in Vancouver.
Vancouver, Canada provides an example of how this can be achieved. Parts of downtown Vancouver are officially under the jurisdiction of the Squamish Nation rather than the city itself. The Squamish Nation realized they could do whatever they wanted with the land and decided to build a huge high-rise housing development.
[I discussed that example in an earlier post.]
Smith also linked to a similar example from the United States.
Tesla is stepping up efforts to open showrooms on tribal lands where it can sell directly to consumers, circumventing state laws that bar automakers from becoming retailers in favor of a dealership model.
Mohegan Sun, a casino and entertainment complex in Connecticut owned by the federally recognized Mohegan Tribe, announced this week that the California-based electric vehicle manufacturer will sell and sell on its sovereign property this fall, which is prohibited by state law. The company announced that it will open a showroom with a distribution center. Apply tt.
What do these examples have in common?Indian countries are densely populated and located in fairly wealthy areas, but they are also highly regulated.
If you look at places like Africa, you have not only large countries that are poorly governed and suffer from poverty (Nigeria, Congo), but also small countries that are poorly governed and suffer from poverty (Equatorial Guinea, Gambia). All of them are located far from the wealthy markets of the north. Even within the United States and Canada, Indian countries tend to be relatively poor due to their remote locations. We also see large countries that remain relatively poor despite being located near wealthy regions. Mexico is a good example.
The “sweet spot” seems to be a small, independent neighborhood near a wealthy, large market. Is this because Native Americans are particularly liberal? I doubt it. Some indigenous communities collectively own land and ban alcohol. In fact, I think these areas have found a niche market. They can profit by providing high-demand goods that are severely restricted by neighboring municipalities.
As we look around the world, we see many examples of wealthy enclaves existing right next to larger but more regulated markets. For example, Hong Kong and Macau are located just on the edge of mainland China. Luxembourg, Liechtenstein and Monaco are located right next to big markets in the EU. Dubai is right next door to larger but more restrictive countries such as Saudi Arabia. These small places are some of the regions with the highest GDP per capita in the entire world.
If Tijuana were a small independent country, I think it would be much richer by now. When I look at the Dominican Republic’s recent economic successes and think back to pre-revolutionary Havana, I feel sad when I think about how much Cubans missed out on. In the late 1950s, Cuba was much wealthier than the DR and located much closer to Florida. )
Longtime readers know that I’m pretty strongly opposed to some of the excesses of wokism (though I’m certainly opposed to bigotry.) But there are some woke initiatives I can support. One is just a few miles south of where I live. There is a 25-mile stretch of almost completely undeveloped land along the coast between Orange and San Diego counties. Currently, the Marines are using some of the land, but the military could easily be relocated to undesirable locations. Perhaps returning the land to the Native American community could atone for past mistreatment of the Indians.
Imagine a developer planning a 25-mile walkable city along the Southern California coast. The San Onofre nuclear power plant could provide carbon-free electricity once it restarts.
We’re losing faith in white people’s ability to make America great again by thinking big, but looking at what the Squamish are doing in Vancouver, maybe Native Americans can recapture America’s pioneer spirit. may be possible. Check out these Miami Beach photos to whet your appetite for the possibilities of Camp Pendleton.
Merry Christmas!
