Tuesday, July 14, 2009

The Smaller Country Advantage

Have you ever noticed that in national rankings of quality of life, citizens of smaller countries usually seem to be a shade better off than those of larger countries? It does not seem to matter which method is used to rate the quality of life in different countries, either the "Human Development Index" or the "Human Poverty Index", both of which are described on http://www.wikipedia.com/ With other factors being relatively equal, smaller countries tend to emerge a little bit ahead.

We could conclude that this is because in a smaller country, in terms of population, it is easier to see the best course of action. Larger countries have traditionally been considered as having advantages of military strength and more possibility of a diverse economy. But today it seems that with operating a larger country, the additional complexity means more chance of becoming "lost in ideology" instead of clearly seeing the wisest course of action.

The leadership of a big country is thus more likely to either overshoot or undershoot the ridge representing the best course of action. I described this resulting zig-zag through history in another posting on this blog, "The Reaction Syndrome", but it seems to apply especially to bigger countries. Big countries have traditionally set the pace ideologically but it seems clear by the above rankings of the quality of life in different countries that a smaller country is less complex and thus likely to be run slightly more efficiently.

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