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

by Ray Dalio

… 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 significantly improved by… … being open to the best global thinking, the country has the most important ingredients in order to succeed. That leads to it gaining… … greater competitiveness in global markets, which brings in revenues that are greater than expenses, which leads the country to have… … strong income growth, which allows it to make… … increased investments to improve infrastructure, education, and research and development, which lead it to have… … rapidly increasing productivity (more valuable output per hour worked). Increasing productivity is what increases wealth and productive capabilities. When the country achieves higher productivity levels, it can become productive inventors in… … new technologies. These new technologies are valuable for both commerce and the military. As the country becomes more competitive in these ways, naturally it gains… … a rising and significant share of world trade, which requires it to have… … a strong military to protect its trade routes and to influence those who are important to them outside their borders. In becoming economically preeminent the country develops… … strong and widely used currency, equity, and credit markets. Naturally those ...