August 17, 2017

YOU CAN'T HAVE A CLASH OF CIVILIZATIONS WHEN THERE IS ONLY ONE:

Capitalist Reforms Are Boosting Prosperity in the Baltics (Daniel J. Mitchell, August 17, 2017, FEE)

The European Central Bank has released some very interesting analysis on the economic performance of these countries.

The Baltic States have been able to maintain an impressive rate of convergence towards the average EU per capita income over the past 20 years. ...these three countries have each pursued a strongly free-market and pro-business economic agenda... The three countries are different in many ways, but share a number of key features: very high levels of trade and financial openness and very high labour mobility; high economic flexibility with wage bargaining mainly at firm level; relatively good institutional framework conditions; and low levels of public debt.

And this has translated into strong growth, which has resulted in higher incomes.

The Baltic States are among the few euro area countries (along with Slovakia) in which real GDP per capita in purchasing power standard (PPS) terms has shown substantial convergence towards the EU average over the last 20 years. While in 1995 their average per capita income (in PPS) stood at only around 28% of the EU15 average, in 2015 it reached 66.5% (see Chart A).

Posted by at August 17, 2017 10:26 AM

  

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