Comparing Apples vs. Oranges

Comparing

Apples vs. Oranges

Compared to, compared to, let us compare... the countries!!! In my Releases "Revolution 4.0 and the Man of Tomorrow - Post-Industrialism, Inequality and the Knowledge Based Economy - Parts 1 & 2", I take you through the last 200 years of history of the two regions I know the most: South-South America and Scandinavia, to show you the differences, but also the similarities. Comparing countries is a difficult thing. Sure, government processes have played their role, but what about history, culture and religion? It is very difficult to compare countries in different regions. Let us take the discussion to a higher level. While the American continent has been mainly populated by immigrants, Europe has much more history of emigration, war and colonization. Could be difficult to explain the situation TODAY without knowing a little bit about the history of these regions.

While Northern Europe has only received migration waves from other parts of Northern Europe, and Southern Europe was under the influence of the Roman Empire (a multicultural empire), Argentina was populated mainly by Europeans, being the 2nd country in the American continent to receive the most European immigrants after the US. Argentinians naturally tend to compare themselves with the US, but the United States of America consists of 320 million inhabitants spread in 50 States. Meanwhile, Argentina consists of 23 states housing 43 million inhabitants. Norway, on the other hand, has only 5 million inhabitants and can be compared only to a Province in these countries. There is no possible comparison.

As explained in my fantastic chapter "Death and Taxes", tax systems cannot be applied indiscriminately without having regards for the culture. While Scandinavians tolerate a heavier tax toll, Southern Europeans prefer a more moderate tax rate and Southeast Asians do not want to pay taxes at all. Consider that communities IN those countries will keep their customs and traditions. Meaning the Asians will still resist paying taxes, even if they live in Europe (or Argentina). The counterpart of the Tax System is the Welfare System. The more taxes you pay, the more you get in return: be it healthcare, education, social plans, whatever. But be careful, too much welfare kills entrepreneurial spirit and drives laziness. Countries should then look up to models that offer a CULTURAL match.

Argentina, the most southernmost country in the World, can look up to both Australia and Canada. From the center South, it could be said that Argentina is very much like Canada. Consider an average of 25.000 USD x capita for Buenos Aires and the Southernmost provinces compared to 5.000 USD x capita in the North. This responds to lower Productivity from the Bolivians, Paraguayans and Peruvians, people of Indian origin and their children also found in Buenos Aires and who live in very bad conditions (they are Argentina's poor people). Former President Cristina Kirchner referred to this group as the people "of the original tribes". They are really 3er or 4th generation immigrants from nearby countries that were not incorporated Productively to the workforce (for whatever reason). I will refer to this group as "the latinos", a much friendlier term than the nicknames that they usually get. The solution to poverty in the case of Argentina lies in increasing the Productivity of the latino group. Canada, much further North, does not face this issue. Australia did have descendents from indigenous people, but not as much. The US does have a much higher Latino immigration rate, usually coming from Mexico. My view is that migration at some point happens naturally: no wall or fence will separate the North of Argentina from Bolivia or Paraguay. As explained in my chapter "Bolivia: the NeXT India", the most powerful nations in South America must "help" or make sure that the situation in Bolivia and Paraguay improves, to resolve their own situation. The impoverishment of nearby countries eventually hits you, as migration waves naturally flow from one country to another. This was not understood by Europe, that with austerity measures strangled Southern European economies dooming itself to the deepest depression since WW2.

In my article: "Dark Clouds over Norway and Scandinavian countries", I explain the challenges Scandinavian countries are going through TODAY. In his masterpiece "Scandinavian Unexceptionalism: Culture, Markets and the Failure of Third-Way Socialism", Nima Sanandaji explains that the success of the Nordics little had to do with the Government. Scandinavians and their descendants abroad show higher Productivity rates than in Scandinavia itself, were government intervention and the Welfare system have actually contributed to hinder growth. This might refer to "the Protestant Work Ethic and the Spirit of Capitalism", as described by German Sociologist Max Weber. Consider that Scandinavian countries have not received migration that is not from Northern Europe at any point in history, and are as such uni-cultural societies. Social tensions are arising as the region shifts towards multi-culturalism. From that view, ALL Scandinavian countries (composing a total population of 20 million people, excluding Finland), should look to the Kingdom of the Netherlands, a country with a colonial, multicultural and merchant history consisting of 17 million people.

Consider the case of Spain. Many times Spain looks up to Germanic countries. Quite clearly, nothing does the multicultural Kingdom of Spain (Roman Empire influenced), have to do with Northern Europe. Different religion, colonial history, multiculturalism, the way the country is organized, the Tax system... Comparisons seem futile. But what is Spain missing, to take the leap? In my article "How Tech Hubs create Wealth", I explain that entrepreneurs should be focused in the efforts of Wealth creation leaving the distribution of that Wealth in the hands of the Government (hopefully in a transparent manner). Culturally different but with the same Religion and Tax burden, Spain can look up to Ireland, a country that appears as bridge between the US and Europe and that the largest Tech giants in the World have chosen to establish their offices (location matters as well). Once more, the same cannot be said about the Nordics, which offer a different Tax System and can look to each other for examples in the Tech Industry (Finland being the most attractive case).

But enough with the countries and comparing!!! In my article "the 4 Keys of Value Creation", I have given you the ingredients to change YOUR OWN life and situation. If you live in a Developed Country, you have all the tools that you need to improve your situation. Don't follow the Pack, do your own thing, find your niche, succeed, and ENJOY LIFE!!! Better LUCK NeXT time!!!

SKÅL!!!

Cristian Bøhnsdalen

CMO/CFO and Co-Founder @ITRevolusjonen