This is why I read John Kay:
In the 20th century political frontiers became a central influence on economic life. Old Kaspar’s work presumably consisted of providing food, fuel and shelter for his family. But with complex products, varied consumer tastes and low degrees of personal sufficiency, resource allocation became less of an individual enterprise, more one of the social and political environment.
That observation is evident on the Finnish-Russian border. The razor wire kept Russian citizens in when the living standards of planned societies and market economies diverged. But now the border is easy to cross and the gap in per capita income has narrowed, though not by much. The very different income distributions of egalitarian Finland and inegalitarian Russia can be seen in the car parks and designer shops of Lappeenranta.
In the Soviet era, Finland produced Marimekko; Russia made no clothes any fashion-conscious woman would want to buy. Post-Communist but still autocratic Russia made surveillance equipment; democratic Finland led the world in mobile phones. Today Russia’s geeks hack into your bank account, while those of Finland develop Angry Birds."
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