4min chapter

Odd Lots cover image

How Economic Complexity Explains Which Countries Become Rich

Odd Lots

CHAPTER

The Monkeys Jumping From Trees Dynamic

In Japan and Korea the increase in complexity did not happen because new companies were created to do more things. It happened by adding capabilities to their capabilities. Finland had a lot of trees so they had to cut the trees, but then became good at tools and machines that cut wood. South Africa is a country that has a lot of coal mineral resources and they knew how to transform that coal into cheap electricity. That made them very competitive in mining and in metal processing and in relatively energy intensive manufacturing. Now they messed up their electricity company. Their electricity company lost the capacity to sell cheap electricity. And now they not only have expensive electricity, they have very lousy electricity with a lot of blackouts or

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