An Economy Builder

Back when I was at school (insert your own age-based jokes), there was an online game where you’d be Chancellor of the Exchequer and simulate running the UK economy. It was a nice little game, though entirely unrealistic: you didn’t sell gold at globally low prices, you didn’t fall out with your PM, and you didn’t make policy purely for your hedgefund mates. But nonetheless, it was a great deal of fun.

Economy sim games have always appealed to me. The economy is nothing if not one big machine. I’m not going to try to describe it because Ray Dalio has already done it far better than I ever could. But, in my mind, economy building is really not that hard. 

If I’m sitting in the Presidential office in Paraguay or the Prime Minister’s office in the Philippines, then god knows I’ll have a story to tell because how on earth did I get here? But if I am sitting in either of those offices or similar around the world, I know what I’d do. 

I’d make capital investments into my country: investment into infrastructure like broadband, power stations, roads, schools, hospitals, airports and railways, because which nation would be stupid enough to cancel the building of high-speed rail? I’d build, build, build the future. I’d build homes, I’d build supertalls, I’d build seaports, I’d build freight hubs, I’d build electricity pylons, I’d build high-speed rail, I’d build extensive metros. I’d want companies to build research centres, manufacturing factories and production lines. I’d build cool stuff because who doesn’t like cool stuff? Anyway, behind all the cool stuff is advanced technology and precision manufacturing that’s quite important.

I’d need to have a decent credit rating so I can borrow money: I’d need a stable currency, stable inflation and efficient financial markets without too much government meddling, so I’d do all that. I’d have growth focused fiscal and monetary policy that enables the country to invest in the future and encourages foreign direct investment and a thriving startup ecosystem. Because it’s entrepreneurs that build and power the future. You need entrepreneurs to do the stuff that government can’t do, like payments infrastructure.

I’d want labour force growth and low unemployment; I’d make my country appealing to people all over the world so they can arrive, get employment, start businesses and transform the nation. So I’d do that as well. I’d want people to be highly educated in STEM, so I’d spend a lot on education and make it free because which nation would be stupid enough to indebt the next generation? Teenagers should spend their money on more worthwhile things … like getting drunk on Estrella in Fabric on a Friday night. And Saturday night.

I’d participate in free trade and global markets to benefit from comparative advantage and the exchange of goods, services and technology. I’d encourage commerce, the free market, competition and entrepreneurial capitalism.

I’d put a strong focus on technological innovation. Not just consumer technology but innovation across hardware, software, deep tech and physical infrastructure that can be exported commercially and through open source. Find where you have a competitive advantage and exploit the shit out of it.

Why am I going on this well-measured, sophisticated rant? Because it’s amazing how many countries get this wrong! The US and China do a good job, and that’s why they are AI leaders. The UK does well in financial services and technology. Germany has historically done well in car production and the development of precision technology. Both economic miracles of the 20th century, Japan and South Korea have advanced technologically powered economies. Israel has a thriving tech economy. Singapore is a global powerhouse. Australia and Canada are pretty nifty, too. Taiwan and semiconductors go together like a well-worn cliche. Vietnam is a rapidly advancing economy, and Estonia is a digital leader in Europe. 

But the fact that I can give you this list of countries is problematic. Of the 195 nations in the world, most are not economy builders, and that’s a shame. Some oxymoronic combination of friendly competition and collegiate collaboration is probably what’s needed to build an economy. We need more economy builders. And we need more of those now - because the further behind a country falls, the harder it is to catch up. Ándale, Ándale!