Martin Krause Professor of Economics ESEADE Graduate School and University of Buenos Aires

Where possession has no stability, there must be perpetual war. Where property is not transferred by consent, there can be no commerce. Where promises are not observed, there can be no leagues nor alliances David Hume ( )

 Competition between monopolies  The Tiebout effect  Exit & voice  Competition fuels evolution ◦ Reason brings variation ◦ Evolution brings selection

 “Race to the bottom”  Competitive actions are negative externalities for other governments  Harmonization

 Rule of Law, World Bank  Voice & Accountability, World Bank  Perception of Corruption, Transparency International  Freedom of the press, Freedom House  Doing Business, World Bank  Global Competitiveness, World Economic Forum  Economic Freedom of the World, Fraser Institute  Economic Freedom, Wall Street Journal/Heritage Foundation

RankCountryRank 2008Rank Denmark12 2Switzerland61 3New Zealand24 4Finland33 5Iceland45 6Canada911 7Ireland1012 8Netherlands89 9United States168 10United Kingdom Australia Andorra-- 13Sweden76 14Norway514 15Luxemburg157 16Germany Liechtenstein-- 18Austria17 19Belgium Hong Kong2720

RankCountry Position 2008 Position Belarus Guinea-Bissau Venezuela Congo, Republic Guinea Laos Uzbekistan Angola Burundi Iraq Afghanistan Eritrea Sudan Equatorial Guinea Congo, Democratic Republic Chad Zimbabwe Turkmenistan Korea, North Myanmar192184

Continents  Europe (0,73)  Oceania (0,65)  America (0,57)  Asia (0,40)  Africa (0,31) Political division  North America(0.93)  Western Europe(0,88)  Latin America (0,45) Central America (0,51) Non-latin Caribbean countries (0,75)  Middle East (0,41)  Former socialists countries in Europe (0,58)

Country Positions won Albania Bahrein Georgia St. Kitts & Nevis Saudi Arabia Dominican Republic Qatar Tanzania Rwanda

Country Positions lost Malawi Argentina Nicaragua Eritrea Belize Guyana Afghanistan Senegal Iran Moldova Guinea Bolivia

Europe: Denmark, Finland, Iceland, Norway and Switzerland America: Canada and US, but then Bahamas, Barbados, St. Lucia and Chile Africa: Mauricio, South Africa and Botswana. Oceania: New Zealand Asia: Japan, Hong Kong and Taiwán US and Canada in America NZ and Australia in Oceania Northern countries in Europe Non-latin Caribean countries compared to Latin America

AsiaPosition HONG KONG JAPAN SINGAPORE TAIWAN KOREA, SOUTH MAURITIUS ISRAEL KUWAIT BAHRAIN QATAR UNITED ARAB EMIRATES MALAYSIA OMAN THAILAND JORDAN MONGOLIA SAUDI ARABIA SEYCHELLES INDIA ARMENIA BRUNEI BHUTAN PAPUA NUEW GUINEA LEBANON MALDIVES SRI LANKA KAZAKHSTAN PHILIPPINES CHINA MOLDOVA INDONESIA KYRGYZSTAN AZERBAIJAN PAKISTAN VIETNAM NEPAL TIMOR-LESTE CAMBODIA YEMEN BANGLADESH SYRIA TAJIKISTAN IRAN LAOS UZBEKISTAN IRAQ AFGHANISTAN TURKMENISTAN KOREA, NORTH MYANMAR

CountryIQIPosition in Asia Position in the world SINGAPORE MALAYSIA THAILAND BRUNEI PAPUA NUEW GUINEA PHILIPPINES INDONESIA VIETNAM TIMOR-LESTE CAMBODIA LAOS MYANMAR

CountryTransparencyVoice & AccRule of Law Freedom press Global competitiveness Doing BusinessFraserHeritage Afghanistan Armenia Azerbaijan Bahrain Bangladesh Bhutan Brunei Cambodia China Hong Kong India Indonesia Iran Iraq Israel Japan Jordan Kazakhstan Korea, North Korea, South Kuwait Kyrgyzstan Laos Lebanon

CountryTransparency Voice & Acc Rule of Law Freedom press Global competitiv eness Doing BusinessFraserHeritage Malaysia Maldives Mauritius Moldova Mongolia Myanmar Nepal Oman Pakistan Philippines Qatar Saudi Arabia Seychelles Singapore Sri Lanka Syria Taiwan Tajikistan Thailand Timor-Leste Turkmenistan United Arab Emirates Uzbekistan Viet Nam Yemen

“The process of enlargement of options for people and the welfare they achieve are at the heart of the concept of human development. Those options are neither finite nor static. Nevertheless, the three esential options for people are: living and extended and healthy life, getting knowledge and having access to those resources needed to have a decent life. But human development does not stop there. Other options, to which many people asign great value, go from political, economic and social freedom to opportunities to have a creative and productive life and enjoy self-respect and protection of human rights.

 Life expectations at birth (25-85 years)  Rate of adult literacy and gross rate of admission to primary, secondary and tertiary education (0 and 100%)  per capita GDP (100 and dollars)

Position HDICountryValuePosition IQI 1Iceland0,9684 1Norway0,9685 3Australia0, Canada0,9619 5Ireland0, Sweden0,9567 7Switzerland0,9556 8Japan0, Netherlands0, France0, Finland0, United States0, Spain0, Denmark0, Austria0, United Kingdom0, Belgium0, Luxemburg0, New Zeland0, Italy0,94148

Asia Position General position CountryValue 18Japan Hong Kong Israel Korea Brunei Singapore Kuwait United Arab Emirates Bahrein Qatar Oman Seychelles Saudi Arabia Malasya Kazakhstan Mauritius Lebanon Thailand Armenia Iran Jordan China Azerbaijan Maldives Philippines Sri Lanka Turkmenistan Indonesia Vietnam Bhutan India Laos Myanmar Cambodia Pakistan Bangladesh Papua New Guinea0.516

Countries with better positions at IQI show a better trend at HDI For example:  Since 1980 Brunei improved its HDI by points, Singapore 0.134, Israel 0.103, Kuwait and UAE 0.100, Bahrein 0.132, Malaysia 0.158, Thailand  Myanmar did it by points, Laos by (since 1995)