⛏️ Productivity

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In 1998, Stanford University published a very famous study about productivity. Its central claim was that social infrastructure is the primary driver of countries’ labor productivity.

Favorable social infrastructure would be one that encourages capital accumulation, skill acquisition, invention, and technology transfer. It relies on solid institutions that protect individuals from theft and corruption and preserve a free market.

The International Labour Organization estimates productivity by how many dollars the average worker of each country contributes to the economy. With recent advances in AI, this metric will be fascinating to keep track of in the next few years.

But looking at the last 10 years, Costa Rica has led Latin America in consistently growing its productivity.

The land of Ticos has long since moved past its agricultural roots to masterfully position itself as a highly competent technology manufacturer. Medical instruments are its specialty, a market worth $6B and making up 25% of total exports in 2023.

If we travel back in time to 1995, bananas were by far Costa Rica's top product, accounting for 28% of the country’s exports. Since then, the value of medical instruments has grown by 160x, leading to quite a prospering industry.

Beyond growth, what are the most productive countries?

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