Prof. Lynn prepared a table of national IQ and GNP. The largest dissonance that remains, I believe, is North Korea. It has a very intelligent and hardworking population, yet its GNP is very low. As soon the regime follows China's example, the country will develope at 15 - 20% per year. How can one become a partner to this potential?
Another small detail. All taxes were abolished in 1974.
6 comments:
One small quibble - I don't usually comment on your English which is so much better than my (almost) non-existent Hebrew, not to mention my (almost) non-existent Spanish and my (totally) non-existent Hungarian, but in English it's Korea with a K. I don't know when to use a Kaf and when to use a Quf either.
I agree with you on the potential of N. Korea (look at the S. Koreans who are of identical stock and are well on their way to being among the top tier of income) but I don't think there's any way to invest at this point. How could you have invested in E. German or Romanian industry in say 1985? Probably the best you could do is make friends with the nomenklatura and hope to do business with them if/when the liberalization occurs.
K
PS the "no taxes" thing invites a good news/bad news joke - the good news is that there are no taxes in N. Korea, the bad news is that the reason is that there's nothing worth taxing.
Under "true" Communism there's not even supposed to be any money, let alone taxes. Too bad that no one has ever gotten close to "true" Communism. It's like the story of the man who was training his horse not to eat by feeding him a little less every day. Just when he had the horse trained not to eat at all, it died on him.
K
As a frequent visitor to S Korea, I will agree on your general observation that once the lid blows off the regime, the growth will be phenomenal.
In the mean time, Kim will be happy to take a down payment.
Anon.
The Eastern Europe model is correct and the way to make money in North Korea will be buying up land, real estate, state-owned industries early on the coming privatization process. Someone should be establishing small private commercial frameworks with the sons of the "nomenklatura" or what ever are called the hereditary communist rulers.
Korea. Thanks. It has been corrected.
The sons of Kim and his accolytes are going to get very rich in the near future. All their foreign associates are going to benefit mightily. I presume Chinese entrepreneurs are already dividing among themselves the bear's skin.
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