European Economic Advisory Group report 2018 on the European economy

Reading the European Economic Advisory Group report 2018 on the European economy I found the following extracts particularly interesting:

  • Pages 14 and 28: The large economies of India and China are growing strongly. For 2018, an overall growth rate of 7.6% is expected in India.
  • Pages 14 and 18: Since the end of 2016, economic growth has been strong in South Korea, Taiwan, Indonesia, Malaysia, Philippines, Singapore, and Thailand. Also, the economies of Estonia, Latvia, Slovenia and Romania report relatively high growth rates of above 4%.
  • Page 36-37: In small states and communities, trust tends to be higher than in larger states. Small states are also more open to global interconnections and particularly to trade. In addition, small states have larger social safety nets, transfer mechanisms, and government spending ratios. These can be seen as an ideal defense / compensation mechanism in the face of globalization. 
  • Page 36-37: Larger states are less open to trade flows and tend to require more rules in the absence of trust. Larger states are also less inclined to redistribute. Rather than compensating for globalization, they try to use power to shape globalization in a way that fits in with their domestic balance of interests.

Source: Page 37.

  • Page 37: The IT revolution marks a radical disruption to the old order of things and to the very notion of a national economy. Participants from all over the world are increasingly finding their place in the global market. This new type of globalization provides major growth opportunities. A challenge, which needs to handled competently by governments, is that the needs of cross-national business networks often contradict the demands for social protection.
  • Page 46: A major success of the Erasmus program has been to demonstrate to young people across Europe that they are all part of something bigger than just their own country, that there is a whole wide world out there inhabited by people just like themselves.
  • Page 48: A key role of countries' governments is that of supplying public goods. A pure public good is defined as one that is completely non-rival (can be used by many individuals without diminishing their usefulness to each of them) and non-excludable (specific individuals cannot be prevented from using them).
  • Page 58: Among the Scandinavian countries, Norway is not an EU member, Denmark opts out of many EU policies, and Sweden prefers not to adopt the euro.

Additional research about countries and topics mentioned above:


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