so even small-population empires become leading world powers if they manage themselves well? That all
implies that what’s most important to be strong is how we are with ourselves.
That brings me to the last and the most important war that we are now facing.
The War with Ourselves: The Enemy Is Us
Our greatest war is with ourselves because we have the most control over how strong or weak we are. Because it is
pretty clear what makes countries strong and weak, and because these strengths and weaknesses are measurable, it
is easy to see how each country is doing. These factors were laid out in the first chapter and measured by 17
indices. I will briefly review them here. Then in the concluding chapter, “The Future,” I will show these indices for
most countries and will explore the leading indicators of them so that we can make projections for the future.
The items that are most important in making a great empire are…
…leadership that is strong enough and capable enough to provide the essential ingredients for success,
which include…
…strong education. By strong education I don’t just mean teaching knowledge and skills; I also mean
teaching…
…strong character, civility, and a strong work ethic, which are typically taught in the family as well as in
school. These lead to improved civility that is reflected in factors such as…
…low corruption and high respect for rules, such as the rule of law.
People being able to work well together, united behind a common view of how they should be together
is also important. When people have knowledge, skills, good character, and the civility to behave and work
well together, and there is…
…a good system for allocating resources, which is significantly improved by…
…being open to the best global thinking, the country has the most important ingredients in order to
succeed. That leads to them gaining…
…greater competitiveness in global markets, which brings in revenues that are greater than expenses,
which leads them to have…
…strong income growth, which allows them to make…
…increased investments to improve their infrastructure, education systems, and research and
development, which leads them to have…
…rapidly increasing productivity (more valuable output per hour worked). Increasing productivity is what
increases wealth and productive capabilities. When they achieve higher productivity levels, they can become
productive inventors of…
…new technologies. These new technologies are valuable for both commerce and the military. As the country
becomes more competitive in these ways, naturally they gain
…a rising and significant share of world trade, which requires them to have…
…a strong military to protect their trade routes and to influence those who are important to them outside
their borders. In becoming economically preeminent they develop…
…strong, widely used currency, equity, and credit markets. Naturally those dominant in trade and capital
flows have their currency used much more as the preferred global medium of exchange and the preferred
storehold of wealth, which leads to their currency becoming a reserve currency and the building of…
…at least one of the world’s leading financial centers for attracting and distributing capital and expanding
their trade globally.
It is through the mutually reinforcing and unwavering improvements in these things that countries rise and sustain
their powers.
At the same time the gaining of these strengths tends to sow the seeds of the cyclical decline that one should watch
out for, which shows up in the form of…
…becoming less competitive because…