What Small Countries Can Teach the World
The large economies have each, in sequence, offered "models" that once seemed attractive to others but that eventually gave way to disillusionment. Small countries may have some answers. They are often better able to experiment with innovative policies and institutions and some of the results are worthy of emulation. This article gives an array of examples. Some of them come from small advanced countries: New Zealand's Inflation Targeting, Estonia's flat tax, Switzerland's debt brake, Ireland's FDI policy, Canada's banking structure, Sweden's Nordic model, and the Netherlands' labor market reforms. Some examples come from countries that were considered "developing" 40 years ago, but have since industrialized. Korea stands for education; among Singapore's innovative polices were forced saving and traffic congestion pricing; Costa Rica and Mauritius outperformed their respective regions by, among other policies, foreswearing standing armies; and Mexico experimented successfully with the original Conditional Cash Transfers. A final set of examples come from countries that export mineral and agricultural commodities, historically vulnerable to the "resource curse," but that have learned how to avoid the pitfalls: Chile's structural budget rules, Mexico's oil option hedging, and Botswana's "Pula Fund."
|Date of creation:||Apr 2012|
|Contact details of provider:|| Postal: 79 JFK Street, Cambridge, MA 02138|
Web page: http://www.ksg.harvard.edu/research/working_papers/index.htm
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frankel, Jeffrey A. & Vegh, Carlos A. & Vuletin, Guillermo, 2013.
"On graduation from fiscal procyclicality,"
Journal of Development Economics,
Elsevier, vol. 100(1), pages 32-47.
- Jeffrey A. Frankel & Carlos A. Végh & Guillermo Vuletin, 2011. "On Graduation from Fiscal Procyclicality," NBER Working Papers 17619, National Bureau of Economic Research, Inc.
- Frankel, Jeffrey A. & Vegh, Carlos A. & Vuletin, Guillermo, 2012. "On Graduation from Fiscal Procyclicality," Working Paper Series rwp12-011, Harvard University, John F. Kennedy School of Government.
- Jeffrey Frankel & Carlos A. Vegh & Guillermo Vuletin, 2012. "On Graduation from Fiscal Procyclicality," CID Working Papers 248, Center for International Development at Harvard University.
- Vulentin, Guillermo & Vegh, Carlos A & Frankel, Jeffrey A., 2012. "On Graduation from Fiscal Procyclicality," Scholarly Articles 8694931, Harvard Kennedy School of Government.
- Jeffrey Frankel, 2011.
"Over-optimism in forecasts by official budget agencies and its implications,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 27(4), pages 536-562.
- Frankel, Jeffrey A., 2011. "Over-optimism in Forecasts by Official Budget Agencies and its Implications," Scholarly Articles 8705906, Harvard Kennedy School of Government.
- Jeffrey A. Frankel, 2011. "Over-optimism in Forecasts by Official Budget Agencies and Its Implications," NBER Working Papers 17239, National Bureau of Economic Research, Inc.
- Kuznets, Paul W, 1988. "An East Asian Model of Economic Development: Japan, Taiwan, and South Korea," Economic Development and Cultural Change, University of Chicago Press, vol. 36(3), pages 11-43, Supplemen.
- Edwards, Sebastian & Edwards, Alejandra Cox, 1991. "Monetarism and Liberalization," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226184890, April.
- Gordon H. Hanson, 2010. "Why Isn't Mexico Rich?," Journal of Economic Literature, American Economic Association, vol. 48(4), pages 987-1004, December.
- Roger H. Gordon, 2010.
"Report of the Editor: Journal of Economic Literature,"
American Economic Review,
American Economic Association, vol. 100(2), pages 678-679, May.
- Roger Gordon, 2008. "Report of the Editor: Journal of Economic Literature," American Economic Review, American Economic Association, vol. 98(2), pages 591-593, May.
- Roger Gordon, 2009. "Report of the Editor: Journal of Economic Literature," American Economic Review, American Economic Association, vol. 99(2), pages 671-673, May.
- Nagel, Jack H., 1998. "Social Choice in a Pluralitarian Democracy: The Politics of Market Liberalization in New Zealand," British Journal of Political Science, Cambridge University Press, vol. 28(02), pages 223-267, April.
- Sebastian Edwards & Alejandra Cox Edwards, 2000.
"Economic reforms and labour markets: policy issues and lessons from Chile,"
CEPR;CES;MSH, vol. 15(30), pages 181-230, April.
- Sebastian Edwards & Alejandra Cox Edwards, 2000. "Economic Reforms and Labor Markets: Policy Issues and Lessons from Chile," NBER Working Papers 7646, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:ecl:harjfk:rwp12-013. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.