Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail

by Ray Dalio

THE WAR WITH OURSELVES: THE ENEMY IS US Our greatest war is with ourselves because we have the most control over how strong or weak we are. Because it is pretty clear what makes countries strong and weak, and because these strengths and weaknesses are measurable, it is easy to see how each country is doing. These factors were laid out in the first and second chapters and measured by 18 determinants. I will briefly review them here, and in the next and final part, I will show these determinants for most countries and will explore the leading indicators of them so that we can make projections of what’s to come. Before we do that, let’s review the specific items that help make a great empire. They are… … leadership that is strong enough and capable enough to provide the essential ingredients for success, which include… … strong education. By strong education I don’t just mean teaching knowledge and skills; I also mean teaching… … strong character, civility, and a strong work ethic, which are typically taught in the family as well as in school. These lead to improved civility that is reflected in factors such as… … low corruption and high respect for rules, such as the rule of law. … People being able to work well together, united behind a common view of how they should be together, is also important. When people have knowledge, skills, good character, and the civility to behave and work well together, and there is… … a good system for allocating resources, which is significan...