Edge of Chaos Quotes

“The world has enjoyed a notably long period marked by relative peace and security. Nevertheless, the forecasts of increasing fragile states, mounting conflicts born of natural resource scarcity, and the rising risk in the incidence of terrorism around the world all point to an increasingly politically volatile world, one that is worsened by economic uncertainty. The Horizon 2025: Creative Destruction in the Aid Industry report cautions that within the next decade more than 80 percent of the world’s population will live in fragile states, susceptible to civil wars that could spill into cross-border conflicts.4 The US National Intelligence Council has published a similarly dire forecast of more clashes in decades to come. While this study focuses largely on the prospect of natural resource conflicts, water especially, it underscores the political vulnerability of many economies. A 2016 report by the Institute for Economics and Peace concludes 2014 was the worst year for terrorism in a decade and a half, with attacks in ninety-three countries resulting in 32,765 people killed; 29,376 people died the year before, making 2013 the second worst year.5”
― Dambisa Moyo, Edge of Chaos: Why Democracy Is Failing to Deliver Economic Growth-and How to Fix It

“It could be argued that one of democracy’s greatest weaknesses is the ability to reform itself. Reform of democracy must, however, be at the heart of a successful plan to improve economic growth and global prosperity. So far this chapter has detailed how the democratic system inherently contains incentives for policymakers to implement bad policy choices that undermine long-term economic success. Nevertheless, as we seek solutions to remedy democracy’s failings, we should acknowledge that politicians in a liberal democracy need not be malicious or even inept to fall prey to short-term thinking. They are wholly rational actors—responding to voters, succumbing to media pressure, and battling to stay in office, even if it means they do so at the expense of the economy’s longer-term success. When democracy works, it delivers economic growth and fundamental freedoms in a way that no other system can. And when it fails, it is rarely, if ever, replaced by a system that can do a better job of delivering for its population. Therefore, creating growth requires that we preserve democratic capitalism’s core strengths—freedom, efficient markets, transparency, and correctly constructed incentives—and reform its weaknesses. Something must be done to remedy the political class’s severe case of myopia, correcting the mismatch between long-term economic challenges and election cycles, safeguarding independent economic choices from political pressures, and eliminating dysfunction and gridlock.”
― Dambisa Moyo, Edge of Chaos: Why Democracy Is Failing to Deliver Economic Growth-and How to Fix It

“The short-termism among US policymakers has meant that the gains from globalization have been misallocated in a way that frustrated millions of Americans and spurred the populist reaction witnessed in 2016. As Alibaba founder Jack Ma pointed out at the Economic Forum in 2017, by choosing to spend $14.2 trillion fighting thirteen wars over three decades, rather than investing in America’s infrastructure, industry, and jobs, policymakers misallocated the wins from globalization. What was clear is that even thirty years ago, industrial jobs in the United States were already on the decline and exposing the economy to greater competition inherent in open international trade, further harming the American worker. The outcome was a missed opportunity to distribute the gains of globalization more widely (and in particular to America’s Rust Belt) and to fund a longer-term infrastructure investment strategy to galvanize the US economy.”
― Dambisa Moyo, Edge of Chaos: Why Democracy Is Failing to Deliver Economic Growth-and How to Fix It

“Many aspects of how the Chinese political class manages its economy are antithetical to the Western values of democracy and free markets. But this stance has not put off foreign investors, who are attracted to the government’s willingness to prioritize physical infrastructure, political security, and stability over the health of the population, transparency in decision making, and transparency in the rule of law (if not necessarily the system of governance). In essence, the pursuit of economic growth overrides any views on the political system they invest in. Currently China’s political class has a strategy to evolve from an investment-led exporting economy to one more in line with Western economies, relying on domestic consumption. The transition to this new economic equilibrium will not be linear. China will likely experience significant economic volatility and market gyrations as the structure of its economy shifts. There is also mounting skepticism about China’s ability to manage its debt levels, and the country’s lack of individual political freedoms will continue to hamper its growth prospects. But Chinese policymakers will, no doubt, be focused on continuing to show economic progress in advance of two target dates: 2021—one hundred years after the formation of the Communist Party—and 2049, one hundred years after the formation of the People’s Republic of China.”
― Dambisa Moyo, Edge of Chaos: Why Democracy Is Failing to Deliver Economic Growth-and How to Fix It

“Two decades after its first democratic election, South Africa ranks as the most unequal country on Earth.1 A host of policy tools could patch each of South Africa’s ills in piecemeal fashion, yet one force would unquestionably improve them all: economic growth.2 Diminished growth lowers living standards. With 5 percent annual growth, it takes just fourteen years to double a country’s GDP; with 3 percent growth, it takes twenty-four years. In general, emerging economies with a low asset base need to grow faster and accumulate a stock of assets more quickly than more developed economies in which basic living standards are already largely met. Meaningfully increasing per capita income is a critical way to lift people’s living standards and take them out of poverty, thereby truly changing the developmental trajectory of the country. South Africa has managed to push growth above a mere 3 percent only four times since the transition from apartheid, and it has remained all but stalled under 5 percent since 2008. And the forecast for growth in years to come hovers around a paltry 1 percent. Because South Africa’s population has been growing around 1.5 percent per year since 2008, the country’s per capita income has been stagnant over the period.”
― Dambisa Moyo, Edge of Chaos: Why Democracy Is Failing to Deliver Economic Growth-and How to Fix It

“An economically weakened and isolationist America will call into question the Pax Americana, whereby the United States oversees international peace and security, and thus expose the world to the unpredictable whims and values of nondemocratic powers. These are not the solutions the world needs. Creating sustainable economic growth in the twenty-first century requires no less than aggressively retooling history’s greatest engine of growth, democratic capitalism itself. This requires a clear-eyed assessment of how ineffective the system is in its current state, politically as well as economically—and then implementing the repairs that will yield better outcomes. Too much is at stake for us to remain wedded to the status quo. The ominous rise of protectionism and nationalism throughout the world portend that the global economy and community are eroding already. The only way forward is to preserve the best of liberal democratic capitalism and to repair the worst. We cannot cling to past practices and old ideologies simply for their own sake. Doing nothing is no choice at all.”
― Dambisa Moyo, Edge of Chaos: Why Democracy Is Failing to Deliver Economic Growth-and How to Fix It

“The United States now has the highest level of income inequality in the industrialized world, a fact that some regard as “a threat to American democracy.”5 Meanwhile, the public’s revolt against globalization, which many blame for the loss of jobs and the hollowing out of the middle class, culminated in the British vote to exit the European Union and the election of political neophyte and outsider Donald Trump as US president in 2016. Trump’s ascendancy, in particular, represented a rebuke of the deeply entrenched political establishment that had dominated US politics for decades.”
― Dambisa Moyo, Edge of Chaos: Why Democracy Is Failing to Deliver Economic Growth-and How to Fix It

“there has been a general acceptance under the rubric of globalization that the movement of capital and ideas (embedded in productivity) is acceptable. In contrast, the free movement of people is fraught with social, cultural, and economic resistance.”
― Dambisa Moyo, Edge of Chaos: Why Democracy Is Failing to Deliver Economic Growth-and How to Fix It

“GROWTH MATTERS—POWERFULLY—TO ORDINARY people. When economic growth wanes, everyone suffers. Stagnation exacerbates numerous social, health, environmental, and political problems. The very essence of culture, community, and people’s individual expectations about the kinds of lives they can lead become dimmer, coarser, and smaller in the absence of growth.”
― Dambisa Moyo, Edge of Chaos: Why Democracy Is Failing to Deliver Economic Growth-and How to Fix It

“In the face of these economic headwinds, liberal democratic capitalism is in retreat.”
― Dambisa Moyo, Edge of Chaos: Why Democracy Is Failing to Deliver Economic Growth-and How to Fix It

“One needed reform, and the eighth proposal in my ten-point blueprint, is to address declining voter participation by making voting mandatory. Established democracies, according to the International Institute for Democracy and Electoral Assistance, have seen “a slow but steady decline in turnout since the 1970s.”8 In November 2014, only 36 percent of eligible voters in the United States cast a vote—the lowest turnout in more than seventy years. And while estimates show more than 58 percent of eligible voters voted in the 2016 US presidential election, turnout was down from 2008 (when it was 62 percent). Since 1900, the percentage of voters voting in US presidential elections has scarcely gone above 60 percent. Many of the world’s countries whose turnout rates are highest—including Australia, Singapore, Belgium, and Liechtenstein, where the 93 percent turnout rate is the highest in Western Europe—enforce compulsory voting laws. As of August 2016, of the thirty-five member states of the Organisation for Economic Co-operation and Development (OECD), five had forms of compulsory voting. In those countries, turnout rates were near 100 percent. There are more than twenty countries where voting is compulsory, including Australia, Belgium, Bolivia, Brazil, Democratic Republic of the Congo, Egypt, Mexico, Peru, and Singapore. In Australia, voter turnout is usually around 90 percent. A more direct comparison within the European Union member states reveals remarkable turnouts from states where voting is mandatory, with 89.6 percent in Belgium and 85.6 percent in Luxembourg. For the sake of comparison, voter turnout was only 42.4 percent in France, 43.8 percent in Spain, and a mere 35.6 percent in the United Kingdom.9 Most often, compulsory voting is enforced through fines on those who don’t vote. Typically these fines are relatively small; in Australia it is AUD 20 the first time you don’t vote and have no good reason, and AUD 50 afterward, while it ranges from 10 to 20 pesos in Argentina.10 Many times, the penalty amounts to little more than a symbolic slap on the wrist.”
― Dambisa Moyo, Edge of Chaos: Why Democracy Is Failing to Deliver Economic Growth-and How to Fix It

“In February 2017, the Institute of International Finance reported that capital flows to emerging markets remained flat, at around US$680 billion, with high downside risks for FDI. Financial market expectations for interest rate hikes in the United States are a contributing factor to weakness in capital flows destined for the emerging markets, as investors look to gain from higher-interest-rate environments. However, the anemic economic growth conditions across the developing world also lower the opportunity for returns and hurt capital inflows. The softness in capital flows to emerging economies could prove more damaging in the long term as the prospects for economic growth continue to wane. Already the world’s largest and most strategically vital emerging nations—such as Argentina, Brazil, Colombia, India, Indonesia, Mexico, South Africa, and Turkey—are only growing at 3 percent or less a year. Ever more damning is the implication of the IMF’s October 2014 “World Economic Outlook” that the world will never again see the rates of growth witnessed prior to 2007.12 This weak economic backdrop comports with a weak capital inflow story. According to the Reserve Bank of Australia, the movement of money through the financial system has been stagnant over the past decade. In dollar terms, cross-border capital inflows among the G20 economies have fallen nearly 70 percent since mid-2007.13 Ultimately, slow economic growth leads to decreased investment, which in turns leads to even slower growth.”
― Dambisa Moyo, Edge of Chaos: Why Democracy Is Failing to Deliver Economic Growth-and How to Fix It

“Edge of Chaos argues that liberal democracies of the sort prevalent in the West simply cannot deliver this growth without substantial reform. Without fundamental changes, democratic politicians will struggle to address the numerous headwinds the global economy faces today. Indeed, the myopia within democracy leads to the misallocation of scarce resources, such as capital and labor, and shortsighted investment decisions by politicians and business. Ultimately, the myriad economic challenges are a manifestation of a corrosive problem in the democratic political process.”
― Dambisa Moyo, Edge of Chaos: Why Democracy Is Failing to Deliver Economic Growth-and How to Fix It