Kennedy School Center, Ricardo Hausmann, Waller discussed on Harvard Kennedy School PolicyCast


Oh ho ho low last week the kennedy school center for international development launched a brand new version of its atlas of economic complexity before you go searching for it let me warn you can be slightly addictive the atlas is at its core a database of decades worth of economic data from every country honor imports exports industries products but if you picturing a series of snoozing do sing spreadsheets you'd be wrong the atlas manages to bring all that data to life through interactive visuals ations that for me at least often turn into rabbit holes of esoteric fascination of course the visuals ations aren't just a novelty near illustrations of complexity economics a field pioneered in part by ricardo hausmann that has proven and reliable predictor of future economic growth hello and welcome to the harvard kennedy school policy cast i'm your host knack had waller in this week in honor of the atlas his 20 launch we're pulling from the archives to feature an interview i conducted with professor housman in 2013 where he explains what economic complexity is and how both investors and makers can use it to better inform their decisionmaking thanks for joining us thank you for having me can you describe what exactly economic complexity is and why it's an important measure for countries around the world well essentially economic complexities related to how much does a city a state a country knows how to do in the essential ideas that the the fundamental ingredient to be able to do something is to know how to do it and an economy is characterized by what it knows how to do a and then in poor countries than to know how to do fuel simple things and rich countries dental know how to do more things and among them more complicated things you we've sometimes used the metaphor over scrabble so the economies like a game of scrabble and the if you have very fuel letters you can make very few words and short words and the more letters you have a the bigger the variety of the words that you could cook up and the long were those words so the variety and complexity of the things that come on economies able to make is a measure of their productive knowledge of their knowhow saudi measure those specific god scrabble pieces well.

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