Who will grow next?

Synopsis

In this discussion, Professor Ricardo Hausmann from Harvard University analyzes the economic growth potential of various countries. He highlights a heat map indicating that Mexico is better positioned for growth compared to Brazil. Hausmann identifies three key factors influencing growth: the status of natural resources, the number of active capabilities, and the ease of acquiring more capabilities. He notes that Mexico has diversified into industries such as aircraft, electronics, and IT, while Brazil has concentrated on soybeans and mining, leading to a weaker manufacturing base. Despite Mexico's ongoing drug war, Hausmann argues that it remains in a stronger position for future economic development. This conversation builds on their previous interview, where they discussed Hausmann's theory of economic complexity.